Taylor Wimpey 'on track' with £1.6bn debt restructuring

Taylor Wimpey (TW) is reported to be on track to sign up to an agreement with its creditors ahead of its next financial deadline – which is 10 March.

TW needs to restructure a debt mountain running to £1.6bn.

TW won a waiver at Christmas just as it was about to break the previous deadline of its banking covenants.

The Financial Times today reports: “The house builder is expected to strike a deal with its banking syndicate and holders of its private placement bonds in time to seek the approval of other bondholders, who hold about £450m of debt, by 10 March.

“Creditors would accept warrants entitling them to less than 10% of the company.”

There is the possibility that an early glimpse of TW’s trading and balance sheet could surface before the group’s preliminary results are formally aired (which itself will be by the end of March) as TW still needs the bondholders to give the nod to the proposed debt restructuring.