Crest Nicholson could ask HBOS for help in debt restructuring

Crest Nicholson could ask HBOS for more capital as it attempts to restructure the terms of its debt.

The housebuilder is believed to be holding meetings with stakeholders, including HBOS, to ask for additional equity as it battles the credit crunch.

According to the Times, HBOS is thought to be considering inviting a new partner to buy into the company to provide more capital.

Hedge funds and private equity groups are the most likely buyers.

HBOS bought Crest Nicholson last year through Uberior Investments in partnership with West Coast Capital.

Since the sale, Crest has seen its profits slump £80m from 2007 and has appointed Deloitte to advise on how to deal with cash problems.