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".
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Is this bridge haunted by the ghost of nu rave?
- 3 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Is this bridge haunted by the ghost of nu rave?
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
Saudi Arabia says it won't rule out building nuclear weapons
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
The West has it totally wrong on Lee Kuan Yew
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...