Debt-for-equity swap will see 60 senior lenders take control of the firm

Retirement housebuilder McCarthy & Stone has reached agreement with its senior lenders on the terms of a refinancing deal.

The so-called lock-up agreement will see trading in its debt stopped in preparation for a debt-for-equity swap that will see 60 senior lenders take control of the business through an official court process.

Its debt currently stands at 拢800m.

A company statement said: 鈥淭his is an important step towards concluding the successful financial restructuring of the McCarthy & Stone business and secures a stable platform for the long term future of the business.

鈥淢any options have been explored with a view to strengthening the company's financial position in light of the unprecedented uncertainty in the marketplace, and this agreement will enable the business to continue to trade with minimal alteration to McCarthy & Stone鈥檚 day to day operations.鈥�

A group of junior lenders, who will get nothing under the terms of the deal, are understood to be considering a legal challenge to the move.

But sources close to the process said the company was confident that any challenge was unlikely to succeed.

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