Troubled developer Inland Homes has renegotiated the covenants on a £26m loan from Secure Trust Bank and a revolving credit facility with HSBC drawn at £22.7m.
The RCF with HSBC, which is set to expire in October, was secured on the housebuilder’s ongoing developments at Meridian Waterside in Southampton (pictured) and Cressing in Essex.
HSBC has agreed a waiver to secure relaxations on its covenants relating to tangible net worth and gearing.
Inland previously secured a waiver from HSBC in September last year on the interest cover ratio covenant, for the three quarters ending 30 June this year.
The facility with Secure Trust Bank, secured on its development at Wilton Park in Beaconsfield, is due to expire in March 2024. A waiver was obtained and concluded for a previous breach of the gearing covenant at 30 September last year, with a further onward waiver of a test due at the end of next month. The covenant will next be tested on 30 September this year.
Nish Malde, group finance director at Inland Homes, said: “While the last financial year has been challenging, I am pleased to report that the group has renegotiated its banking covenants with two core lenders.
“Both lenders have held long-term supportive relationships with the group over many years and continue to support Inland’s delivery of key schemes in the South and South East, creating much-needed homes in a land market that is short of consented plots.”
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