Eatonfield finds another month’s cash

Embattled Cheshire-based developer Eatonfield said it has enough working capital to see it through to mid December.

In a statement to the London Stock Exchange the company said: "Eatonfield has…agreed with one of its banks that the group can retain the surplus cash flows generated on a recently concluded housebuilding contract and apply these to fund working capital. The group has also obtained the agreement of certain of its creditors to defer payment of outstanding invoices to a later date. On this basis, the board now expects that Eatonfield's existing financial resources will provide it with sufficient working capital funding until mid December 2010."

Eatonfield's previous banking agreement expired at the end of September and the company is in "constructive" talks with the banks although it has not yet "received formal notice of extension of such facilities".

In the meantime, the company is trying to dispose of certain land assets to free up more cash.