Irish house builder McInerney Holdings has admitted it is still in breach of banking covenants, due to challenging conditions in the UK and Irish housing markets.
In a trading update, the firm reported sales in its Ireland, UK and Spain business were down to 756 in the year to 31 December 2009, compared to 1,359 homes in the previous year.
McInerney completed 582 units in the UK during the year compared to 750 in 2008. At 31 December 2009, the firm had 330 deposits on properties, compared with 459 at the end of the previous year.
In November 2009, McInerney said it was negotiating with its UK and Irish funders to revise loan facility structures.
The firm said: “The group continues to be in breach of certain of its Irish and UK banking covenants.
“Accordingly, the group depends on the continued support of its principal banks for ongoing trading activities.
“However, draft term sheets for revised banking arrangements in both Ireland and the UK are awaited shortly.
“The group’s priority in current economic conditions is to remain focused on cash generation and the achievement of a stable funding platform.”