The US hedge fund Varde has proposed converting £359m of debt intoequity as part of its plans to secure ownership of Crest Nicholson,one of the UK’s largest housebuilders.
New accounts filed at Companies House say the debt-for-equity swap will allow Crest to extend bank facilities until 2015, return to a net asset position and borrow on “normal commercial terms”.
Varde has acquired more than 80% of Crest’s senior debt over the past year from banks, meaning it can force through a debt-for-equity swap by consent or scheme of arrangement.
Sunday Telegraph 01/05/2011 Business page 2
