Housebuilder Barratt Developments is reportedly close to securing a new refinancing package.
The company has an alleged debt of £1.7 billion and the Telegraph reports that it hopes to announce the refinancing at its upcoming trading update.
It is reported that major
banks HSBC, Royal Bank of Scotland, Barclays and Lloyds TSB have all given "preliminary approval" to the deal, the central axis of which is £400 million of "fresh bank debt" to repay a loan which funded last year's takeover of rival Wilson Bowden.
Barratt have declined to comment, but a source close to the process told the Telegraph that the company should "now have plenty of headroom to cope".
"The truth is the banks have so much skin in the UK housing game they couldn't afford to let things get any more choppy," the source added.
In other news, it has been revealed that Clive Briault, the official who supervised the Northern Rock collapse, received a £530,000 payoff after leaving the
Financial Services Authority.
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