Buckinghamshire's Inland Homes says development subsidiary is in breach of lending covenants
Buckinghamshire-based house builder Inland Homes plc has reported that its development subsidiary is in breach of lending covenants.
In a stock market statement, the Beaconsfield-based firm said it had now advised HSBC that "it considers that its subsidiary Inland Homes Developments Ltd" was in breach of "certain historic and forward looking covenants in relation to a debt facility of £13.6m provided to that company".
READ MORE: Buckinghamshire's Inland Homes warns of potential loan covenant breach
The loan facility is guaranteed by Inland Homes plc and the total amount drawn under this facility from HSBC so far is around £11m, the company added.
"Inland Homes plc is in active discussions with HSBC regarding waivers for the breaches and a further announcement will be made in due course," it added in the brief statement.
Last month, Inland Homes warned it could breach its loan covenant and said it was considering altering the value of some of its assets which could trigger a breach of the asset cover covenant related to the loan with its subsidiary.
The company has yet to publish its 2022 accounts.
In September last year, Inland Homes appointed a specialist to help with a strategic review of its business.
Lazard & Co were tasked with carrying out a root-and-branch review of the brownfield site specialist.
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