McINERNEY Properties one of its creditors has agreed terms with one of its creditors which should pave the crucial financial restructuring to be completed.

Four Seasons Country Club, the timeshare leisure operation in Portugal, has agreed to waive two tax indemnities, provided by McInerney, in return for £300,000 in cash and a further £330,000 new shares in McInerney.

The 3,000 members of the club will have to agree to the deal at an extraordinary general meeting next month. The club's committee is recommending they accept.

If the members agree to the deal they will end up with a share holding probably under 5 per cent either McInerney Properties or, more likely, a new holding company which may be created as part of the restructuring.

McInerney should then be in position to complete details of the financial restructuring. The long awaited annual report and details off the restructuring could then be circulated to its shareholders.

The indemnities are in respect of Portuguese tax assessments. These could amount to £9 million. However, these have always been disputed.

McInerney needs these indemnities to be erased. A refinancing would hardly be possible with these contingent liabilities outstanding against the group.

The refinancing involves an injection of £5 million in new equity and the conversion of some debt into equity. The group is understood to have received commitment for more than £5.5 million. A major Irish based institution is putting up most of this.

About £2.85 million of that injection will be used to pay off the secured loan stock held by Standard Life, Irish Life, the McInerney family and management. Those funds would then be converted into equity.

Existing shareholders will only receive a negligible amount of equity in the revamped group. The deal is likely to place a nominal value on the existing shares and this will be well below the market priced of 6.5p. However, with a group negative net worth of some £9 million they will have little option but to accept.

The last results from the group showed a modest improvement in, profits from £326,000 in 1994 to, £353,000 in 1995. Restructuring costs of £200,000, however, cut the profit to £153,000. The annual report will be qualified because of the uncertainties that existed at the end of the year.

McInerney is anticipating further underlying profit growth this year but it is making a cautious approach to house building, due to rising land prices and building costs.