Sponsors wiped out in Crest Nicholson debt-for-equity swap

Crest Nicholson, the UK housebuilder, became the latest company to succumb to debt troubles when it announced that it was to be taken over by its lenders on Wednesday. It will write off £630m of its liabilities in a debt-for-equity swap that that will place 90% of the company’s equity in the hands of its lenders, and the remaining 10% in the hands of the company management.