Costain acts to reduce debts
Sunday 10 August 1997
The negotiations could be completed by the end of August, allowing the company to publish its long-overdue 1996 results and begin to trade its shares again on the London Stock Exchange following their suspension last November.
Costain needed an infusion of capital, which would put it in a position to bid on several construction projects in Malaysia, said an executive with Renong Bhd, a Malaysian holding company. Renong's chairman, Halim bin Saad, controls a majority stake in Costain's largest shareholder, Intria Bhd. Costain declined to comment.
The construction firm, once one of the industry's largest, has lurched from one financial crisis to another. Its shares fell from over pounds 3 in August 1989 to 46p when they were suspended last year, valuing it at pounds 95.3m.
In July 1996 Costain was bailed out by Intria Bhd, a Malaysian construction firm, which paid pounds 73m for a 40 per cent stake and four seats on Costain's 10-member board. It said net debt was pounds 28m, though most recent data on Costain puts it at pounds 22m, according to IBCA, the credit rating company.
The agreement allowed the creditor banks, which include National Westminster, Lloyds TSB Group and Barclays, to avoid forcing Costain into receivership.
In a brief comment last week, Kim Eng Securities, a Malaysian brokerage firm, said prospects in 1998 for Costain would improve if a financial reorganisation goes through.
It said Costain had an order book worth pounds 500m in the Pacific Rim "which can last until end 1998".
Much-loved cartoon character returns - without Sir David Jason
Liam Neeson's Downton dreams
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Actress to appear in second series of the hugely popular crime drama
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...