These "asset cover covenants" govern the ratio of debt to assets, and breaches were thought likely given the falling land market and Barratt's debt of £1.8bn. A source close to the talks says all Barratt's other refinancing options have been ruled out. It is understood the waiver will remain until it has repaid the remaining £400m it borrowed to fund the £2.2bn acquisition of Wilson Bowden in February 2007. It has until the middle of 2011 to do this. They said: "A loan to equity swap was a ludicrous suggestion because the banks don't want to take on that sort of risk. And a rights issue is out of the question at the moment given the share price." Other sources suggested the banks were effectively forced into a corner. They said: "With massive mortgage books of their own they were never going to let Barratt go under. There was effectively no choice but to offer the waivers."