Commercial property specialist Eatonfield (LON:EFD) was among the top risers on the LSE today after reassuring investors about its funding position, saying it has sufficient working capital to last until late February 2011.
The stock had risen 24.44 percent by midmorning to trade at 0.56 pence.
Just before Christmas, the group had warned that finding would run out in late January.
In today’s trading statement, Eatonfield said it continues to defer payment of amounts due to certain of its senior lenders and trade creditors to a later date.
“On the basis that the relevant lenders and trade creditors do not demand payment in the short-term and that Eatonfield continues to receive their support, the board now expects that the Group's existing financial resources will provide it with sufficient working capital funding until late February 2011.
The previously announced negotioations for the sale of itsWelsh land portfolio and agreement of related follow-on housebuilding contracts, both of which remain subject to the consent of the group's lenders, are approaching the final stages.
Following conclusion of these negotiations, Eatonfield will seek similar deals for the group's Corus and Birkwood sites as well as pursue plans to raise further equity.
All of its existing bank facilities remain available as of today.