Varde looks to restructure debt after taking over at least 80 per cent of housebuilder, reports claim

Housebuilder Crest Nicholson has been taken over by American hedge fund Varde, which has reportedly secured more than 80% of the company.

The Sunday Telegraph reported that the fund has been secretly buying Crest Nicholson’s £500m debt over the past few months, and has now passed the 75% mark that allows it to restructure the housebuilder’s balance sheet.

The move will allow the fund to cut Crest’s borrowings and complete a takeover through a debt for equity swap.

Crest Nicholson has already undergone a significant debt restructure since the credit crunch that saw entrepreneur part-owner Sir Tom Hunter lose his stake in the company

Crest was bought by Hunter and HBoS at the height of the market 2007 in a £715m deal backed by £1.2bn of debt.

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