Deal to relax lending covenants is now in place, says housebuilder
Barratt has announced that the refinancing package agreed with its banks has now been signed and come into effect.
The package, which was first revealed by 好色先生TV seven weeks ago, will see the banks relax lending covenants that the housebuilder feared might be breached as a result of the market downturn.
A company statement said: 鈥淯nder this documentation, the interest cover covenant is replaced with a cash-flow covenant and the gearing and minimum tangible net worth covenants are relaxed.
鈥淎s anticipated, this final documentation also extends the maturity on Barratt's existing 拢400m revolving credit facility from February 2010 to July 2011.鈥�
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