Inland Homes has declared a breach of a loan covenant with HSBC.
The house builder, based primarily in the south of England, said it had informed the bank its subsidiary Inland Homes Developments is in breach of certain covenants relating to a debt facility of £13.6 million.
It added it is in talks with HSBC regarding waivers for the breaches.
“Inland Homes […] announces that it has advised HSBC that it considers that its subsidiary Inland Homes Developments Ltd is in breach of certain historic and forward-looking covenants in relation to a debt facility of £13.6m provided to that company. The facility is guaranteed by Inland Homes plc,” said the company.
Adding: “The total amount drawn under this facility from HSBC to date is approximately £11m. Inland Homes plc is in active discussions with HSBC regarding waivers for the breaches and a further announcement will be made in due course.”
In July the brownfield developer announced the appointment of former MJ Gleeson boss, Jolyon Harrison, as its new CEO, as then incumbent chief financial officer and acting CEO, Nishith Malde, prepared to step down.
“In due course it is proposed to rebrand the business to reflect its focus on housebuilding in the north of England,” Harrison said at the time.
It also recently announced the acquisition of NorthCountry Homes Ltd for £4 million.
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