Taylor Wimpey still in talks over debt restructure

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Troubled house builder Taylor Wimpey has revealed it is still in discussions about securing new debt facilities with its banks.

The company announced in its interim results at the end of August that it was in discussions with the debt providers to amend the future provisions of its existing borrowing requirements.

In a statement today, the company said the renegotiation of covenants on its £1.7 billion debt were continuing and that a settlement was unlikely before the new year.

The company, whose share price has fallen by 83 per cent since the start of 2008, said in August that it would breach the financial covenants on its £1.7 billion debt by February if they were not renegotiated.

A statement from Taylor Wimpey said: "These discussions are continuing on a constructive basis and the coordinating banks have indicated that it is their intention to agree to replace the current covenants with a revised set of covenants which are more appropriate to the current market environment.

"The recent unprecedented events in world financial markets have reinforced the board's cautious view of the short term outlook for UK housing.

"In the current environment, securing a comprehensive financing structure that is robust under all reasonable downside scenarios is essential.

"To that end the board has decided to extend the current discussions with debt providers to include applicable Eurobond holders, which will prolong the negotiation process."