Crest Nicholson鈥檚 banks have begun work on a refinancing deal after effectively ditching plans to sell the housebuilder to Horizon, the listed bid vehicle of the former Pizza Express owner Hugh Osmond
The decision was made following a meeting last Friday of its 24 banks, which bought 90% of the company in a 拢600m debt-for-equity swap last year.
It is understood a deal would have been up for discussion had Horizon increased its offer of about 拢335m to closer to 拢400m.
A source close to the talks said: 鈥淭here was a shift in strategy after the meeting and the banks are now working on some timetables and different proposals for a refinancing deal.鈥�
黑洞社区 understands that Morgan Stanley, which is advising the housebuilder on its options, estimates that Crest will be worth between 拢490m and 拢600m in three to four years if it refinances and becomes active in the land market.
Talks with Horizon, which began in April, have stalled as the housebuilding market has been hit by fears of a double-dip recession and the drying up of funds from the Homes and Communities Agency. The share prices of listed housebuilders have fallen by between a quarter and a third in the past three months.
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