The Board was informed by the bankers on the late afternoon of Wednesday 9 August that the Group’s temporary bank lines would be capped at then current drawn levels.

Trading was suspended recently on shares of Homebuy Group, one of the United Kingdom's largest furniture, appliance and electronics rental companies.

Homebuy’s customer base has grown over the last two years to 100 thousand customers, financed by its existing banking facility of £75 million which has been fully drawn down.

The company's Board is reportedly in negotiations to increase Homebuy's funding. In a statement issued today, the company said, "Discussions with the Group’s bankers gave the Board confidence that additional banking facilities would be available on a timely basis to facilitate the future growth of the Group."

The Board was informed by the bankers on the late afternoon of Wednesday 9 August that the Group’s temporary bank lines would be capped at then current drawn levels. Homebuy’s bankers have provided the company with a short term overdraft facility to allow some time for negotiations with potential sources of funding to progress.

Subject to review by advisors and Board approval of the Group’s business plan, the Board has held discussions with certain shareholders regarding increasing the Group’s additional funding capacity by £100 million by the end of 2008. That funding is likely to comprise a mix of additional equity, junior debt and additional senior debt. From that time, the Group’s funding requirement is expected to reverse as the Group’s cash flow turns positive. Further, the Board currently expects to have further discussions with regard to an amortization program for the existing £75 million term debt with its existing bankers.

During the last few days, members of the Board have held discussions with existing shareholders and a number of alternative potential sources of funding. The Group’s ability to continue to trade is dependent upon the successful outcome of these discussions and the continuing support of its bankers.