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Taylor Wimpey debt deal secured

Taylor Wimpey has agreed a debt restructuring deal with its banks, securing its immediate future, Construction News understands.

The company holds about £1.5 billion in net debt, and speculation had mounted that it could be forced out of business unless it could refinance.

But it is now close to finalising a deal that will see it move to debt covenants based on its cash flow and gearing – rather than on its earnings before interest and tax.

House builders have been hit particularly hard by the recession because of a lack of mortgage availability and falling house prices.