In a statement the housebuilder said: "Discussions are continuing on a constructive basis and the coordinating banks have indicated that it is their intention to agree to replace the current covenants with a revised set of covenants which are more appropriate to the current market environment.".

The company had been expected to conclude a revised structure before the New Year but it said the extension of the current discussion to include applicable Eurobond holders will prolong the negotiation process

"As a consequence, it is now likely that a revised covenant structure will be concluded early next year before the announcement of our Preliminary Results," it said.

It added that it remains in compliance with its existing covenant package and has adequate facilities available.

Shares in the company already trading at historic lows fell seven per cent on the news.