Further talks on Taylor Wimpey debts

Source: Exec Digital UK

Date :03/10/2008 14:31:16

Homebuilding company Taylor Wimpey plc has pushed back the target date for concluding debt talks.

The UK-based construction company has told its investors that the debt deal expected with its banks in October will be concluded by the end of the year instead.

The company is also thought to be attempting to rework the £1.6 billion net debt it has been carrying. The main problem appears to be the complexity of the debt, which is split across a consortium of banks and is also public bonds which are rated as high risk in the current climate. Meanwhile, the company’s land, its main asset, is also falling fast in value.

“What we want is a watertight package that would withstand any reasonable scenario. The recent events have reinforced our cautious view,” said Chief Executive Pete Redfern.

The company’s share prices have lost almost 90 percent of their value in a year. Shares were down 2.2 percent to 33.8 pence in London.