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Oakdene Homes

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Seems like they breached the conditions of a loan some months ago and had been trying to renegotiate but the bank wants the money back - plug pulled. (Source: ADVFN)

Edited by blankster

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I'd never heard of them either. Googled and: ....Developer in South-East (Surrey, Hants, Sussex, Isle of Wight).

They area a quoted PLC.

Suspended trading of shares but doesn't meant the business has shut down.

Edited by blankster

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Housebuilder Oakdene Homes is on the brink of collapse after it failed to reach an agreement with lenders over new debt terms.

The company announced in September that it had breached banking covenants and was relying on a temporary facility as it tried to negotiate new lending terms.

However, in a statement to the stock market yesterday, Oakdene said it had requested a suspension of trading in its shares pending "clarification of its financial position" after failing to reach an agreement with banks.

"Unfortunately, the company has not been able to agree terms with its lenders and they have served notice on the company to repay the outstanding facilities," it said.

Oakdene would be the first listed housebuilder to fail in the current property slump.

Shares in major UK housebuilders, such as Taylor Wimpey, Barratt and Persimmon, also tumbled over fears about their debt mountains.

Oakdene's primary bank is believed to be Royal Bank of Scotland, which is 70pc owned by the state, and the fact that lenders seem willing to pull the plug on Oakdene is likely to spread concern across the rest of the property sector.

Oakdeane shares fell 94% last year.

Edited by Little Professor

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Jan. 22 (Bloomberg) -- Oakdene Homes Plc said it failed to negotiate new debt terms with banks, making it the first publicly traded homebuilder to face insolvency in the current property slump.

Banks are demanding repayment of credit lines and Oakdene shares were suspended from trading “pending clarification of its financial position,” the Reigate, England-based company said in a statement today.

The homebuilder, which focuses on developing property in southeast England, said in September that it had breached debt terms with lenders and was relying on a temporary loan. Earnings more than halved amid Britain’s biggest housing slump in 25 years, prompting Oakdene to halt development of new sites. The crash has also forced larger rivals Taylor Wimpey Plc and Barratt Developments Plc into survival talks with creditors.

“It shows a hard line by the banks to allow a company to go under -- it marks out the territory,” KBC Peel Hunt analyst Robin Hardy said today. “Oakdene is practically insolvent. This exercise is going to repeat itself again and again"

At Taylor Wimpey, creditors agreed in December to defer a test of the debt covenants, which could have sparked its collapse. Redrow Plc and Barratt Developments are amongst homebuilders that have successfully won new terms in exchange for higher interest payments.

Pulling the Plug

“It would be risky to read across to Taylor Wimpey because of the difference in scale,” Hardy said. Banks may be reluctant to take control of Taylor Wimpey or let it to go under because of the difficulty in trying to sell housing assets in current market conditions and the company’s larger size, he said.

“Oakdene has been an accident waiting to happen for some time,” said Alastair Stewart, an analyst at Dresdner Kleinwort. “The fact that the banks are willing to pull the plug on them may be a sign for the future in the sector as until now there has been a relaxed view that the banks wouldn’t let a homebuilder go.”

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1p? They're worth x10 times that! :rolleyes:

It's all those damned rumours I tell you. Buy now before it's too late!

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
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      • Even
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