Barratt close to securing rescue refinance deal

Barratt Developments is close to securing a rescue refinancing deal with lenders.

The housebuilder has hired investment bank NM Rothschild and a restructuring team from Deloitte to negotiate with its lenders.

Its banking syndicate has given preliminary approval to the deal, according to the Daily Telegraph.

An official announcement is expected next week as part of its trading update.

The newspaper reports that Barratt’s banks have run drastic downside scenarios for the next few years to make sure the company can cope with the downturn.

The refinancing deal centres around £400m needed to repay the £600m takeover of Wilson Bowden last year.