In a stock exchange announcement the firm confirmed: “Inland Homes has advised HSBC that it considers that its subsidiary Inland Homes Developments Ltd is in breach of certain historic and forward looking covenants in relation to a debt facility of £13.6m provided to that company.
“The facility is guaranteed by Inland Homes plc.
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“The total amount drawn under this facility from HSBC to date is approximately £11m. Inland Homes plc is in active discussions with HSBC regarding waivers for the breaches and a further announcement will be made in due course.”
The breach comes two months after veteran house builder Jolyon Harrison was appointed as CEO in a bid to turn the business around.
He joined after Inland delayed publishing its latest results for the year to September 2022 while a series of accountants went through transactions in the books. Losses are expected to hit £91m.
Harrison’s plan is for Inland is to pivot from its traditional market in the South and South East of England and focus on new low-cost home developments in the North.
