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Connaught gets breathing space from it's bankers as it fights for survival
When Connaught Plc announced on 26 July, that it was in discussions with its lenders to secure additional funding, it said it was in breach of it's loan covenants. The Company was at the mercy of it's bankers, but today has announced that it has now agreed with its lenders the terms of an additional £15 million, short term overdraft facility, together with deferral of interest and principal payments due on its existing facilities in July and August. The overdraft facility is available immediately. This facility will be in addition to its current facilities of £200.6 million.
Connaught will continue negotiations with its lenders in the coming weeks with the objective of securing, in due course, a restructuring of it's financing for the longer term.
Commenting, Sir Roy Gardner, Chairman of Connaught said:
"We are delighted by this tangible evidence of support from our lenders. We will now seek to put in place arrangements which will leave Connaught on a more secure footing for the longer term."
Connaught serves mostly public sector clients offering it's property management and maintenance services. If it couldn't make money in the old public sector environment it will really struggle in the coming climate and convincing it's lenders that it can cut costs whilst still maintaining profitable operations will not be easy. It has breathing space but is far from out of the woods.
Connaught will continue negotiations with its lenders in the coming weeks with the objective of securing, in due course, a restructuring of it's financing for the longer term.
Commenting, Sir Roy Gardner, Chairman of Connaught said:
"We are delighted by this tangible evidence of support from our lenders. We will now seek to put in place arrangements which will leave Connaught on a more secure footing for the longer term."
Connaught serves mostly public sector clients offering it's property management and maintenance services. If it couldn't make money in the old public sector environment it will really struggle in the coming climate and convincing it's lenders that it can cut costs whilst still maintaining profitable operations will not be easy. It has breathing space but is far from out of the woods.
Thu, 29th Jul 2010