Eatonfield strikes deal with creditors

CHESHIRE property developer Eatonfield has agreed to defer payments to creditors as it continues to negotiate with its lenders.

The cash-strapped firm said it had also been permitted by one of its banks to retain surplus cash it had received from a housebuilding contract.

With these measures in place the company said it has sufficient working capital to last until mid-December.

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

The deadline for the renewal of its bank facilities was September 30 and it has not been formally notified of an extension but insists its bank facilities are still available. “The board remains in constructive discussions with the relevant lenders,” it said.

It is continuing to work on the disposal of assets and a plan to raise further equity funding which would require a capital reorganisation.