HOUSE BUILDER McInerney Holdings is renegotiating funding arrangements with its banks in Ireland and Britain, the company told shareholders yesterday.

When it released interim results for the first half of the year last month, the group said it had written down the value of its Irish and British land banks by €156 million. McInerney held an egm in Dublin yesterday. Chairman Ned Sullivan said the group’s deteriorating financial situation required it to renegotiate its banking and other funding arrangements.

“These negotiations are ongoing and, to date, are proceeding constructively,” he said.

“While we do not anticipate an early conclusion to these funding negotiations, our banks are supportive of the measures we have taken in response to market challenges and are working with us through what are difficult times for our industry.”

He said the company expects a positive outcome to the talks before it releases its full-year results next March. McInerney has restructured since the downturn began two years ago.

The measures included laying off 700 people, cutting overheads, amalgamating offices and ceasing land purchases. They have cut its overall cost base by 70 per cent since 2007. Mr Sullivan said that the board is continuing to seek efficiencies and cost reductions.

The company believed that the write-down of its land bank last August was necessary given the fall in housing markets in both countries, which are its main sources of revenue. The charge was calculated on the basis of current trading prices and sales volumes. The loss of capital was non-cash. Overall, it has written down the value of its Irish land bank by 50 per cent, and its British land bank by 40 per cent, since 2008.

Over the last two months, the company has seen indications that its market in Britain has stabilised, albeit at very low levels.

Mr Sullivan said he expected the company’s bank loans could be taken over by the National Asset Management Agency.