Crest Nicholson was taken over in 2007 for £1.2bn by HBOS and Scottish entrepreneur Sir Tom Hunter. Since then, the company has been saddled with huge debts. A £630m debt-to-equity swap in March 2009 saw ownership transfer to a consortium of 24 banks.
Varde’s involvement with the housebuilder began in September 2010 when it took over HBOS’s 30% stake in the business from Lloyds. Since then, it has been buying up Crest’s debt and now controls more than 80% of the company, according to the Sunday Telegraph, leaving fewer than 10 banks still involved.
Last year pizza entrepreneur High Osmond tried to negotiate a deal with the 40 banks to take ownership.
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