Eatonfield still in talks with lenders

DISTRESSED Tarporley-based property developer Eatonfield is still in talks with its lenders over renegotiating debts despite missing yesterday’s deadline.

In a statement to shareholders the company said the deadline for the renewal of its facilities was September 30 and it has not been formally notified of an extension.

“The board remains in constructive discussions with the relevant lenders and all of the group’s existing banking facilities remain available at the date of this announcement,” said the company.

The firm, which has been struggling since one of its banks withdrew support earlier this year, had told the City that it would have enough working capital to see it through until the middle of October following a series of cash injections by property firm Jenard – a joint venture partner on a project in South Wales.

It now says it has sufficient capital to last for several more weeks until the end of the month and it is continuing to work on the disposal of assets and a plan to raise further equity funding which would require a capital reorganisation.

“The board intends to send a circular to shareholders convening a general meeting to consider the capital reorganisation shortly.”