The Dublin housebuilder is restructuring its bank finance to counter the effects of recession
Dublin housebuilder McInerney has said it is poised to sign fresh banking agreements with its UK lenders to cope with the recession.
In a trading update today it said: “A new banking structure has been agreed in principle with its existing banking relationships in the UK. The covenants are structured in a manner more appropriate to the group's focus on cash collection and sales rather than earnings. As part of the revised structure, the maturity date is to be extended to 31 March 2010.”
The upbeat tone was in stark contrast to fellow AIM-listed housebuilder Oakdene, which yesterday pulled its shares from trading after failing to agree new facilities with its lenders.
McInerney said that total residential completions for the group in Ireland, UK and Spain were 1,359 - a 78% fall since 2007.
UK completions were 750 - almost half the 2007 figure of 1,400.
A company statement said: “It is the group's view that, as the current difficult trading environment continues, an improvement in the housing markets can not be expected in the short term. The group believes it is prudent, therefore, to undertake a further review of the carrying value of the land bank, based on further house price discounting.”