Amey close to £200m refinancing deal

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The Independent Online

Amey is thought to be close to pulling off a £200m refinancing deal, with an announcement possible as early as today.

Amey is thought to be close to pulling off a £200m refinancing deal, with an announcement possible as early as today.

The beleaguered engineering and support services group declined to comment but it was understood to be locked in talks with bankers and lawyers last night. As well as renegotiating its debt, which was necessary after Amey breached its banking covenants, the company will also put out a statement on its capital position. It is believed the group will assure the market that it has a verified 12 months working capital.

Amey must clarify its capital position ahead of an extraordinary general meeting, to approve the sale of its PFI equity stakes to Laing. The company aims to hold the EGM ahead of its interim results, which are scheduled for next month, which means that it must quickly send out a circular to shareholders.

Analysts said that today was the last day that Amey could release the details of the circular, if it is to meet this timetable. Some speculated that the reason why there had been no announcement yet was because the banks were not happy with the company's financial position or were demanding punitive terms for the refinancing. However it is understood the company had most elements of the plan in place last night.

Amey, which has received a bid approach, is desperately trying to restore its financial health after it had to restate its accounts. Once a darling of the City, the company had been failing to expense its bid costs on Private Finance Initiative projects. Once its figures were restated after the bid costs, profits turned into losses.

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