The housebuilder has announced that the final documentation relating to the restructuring of its covenant package with its banks and private placement note providers, announced on 10 July 2008, has been signed and has become effective.

Under this documentation, the interest cover covenant is replaced with a cashflow covenant and the gearing and minimum tangible net worth covenants are relaxed. As anticipated, this final documentation also extends the maturity on Barratt’s existing £400m revolving credit facility from February 2010 to July 2011.