Retirement housebuilder forced into move after banks reject 拢900m debt restructuring plan
Retirement housebuilder McCarthy & Stone is set to strike a similar debt-for-equity swap deal to Crest Nicholson, according to sources close to the situation.
It is understood the deal will be struck after plans submitted by investors the Reuben brothers for restructuring its 拢900m debt-pile were turned down by the banks. They were reportedly unwilling to write off debt by the amount required under the terms of the proposal.
The precise equity stake to be taken by the lenders is not known.
The housebuilder was taken private by a consortium of HBOS, Sir Tom Hunter and the Reuben brothers for 拢1.1bn in 2007.
It is understood Hunter will lose his equity stake under the terms of the debt for equity swap in similar fashion to Crest Nicholson.
Earlier this week Crest agreed a debt-for-equity swap that saw lenders write off 拢630m debt in exchange for 90% of the housebuilder鈥檚 equity.
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