Costain told main contractor AE&E Inova has refinancing plan
Contractor Costain has received assurances from the troubled main contractor over the £120m Belvedere waste-from-energy facility over the £22m it is owed on the job.
Costain said the main contractor, AE&E Inova, who’s Austrian parent company has filed for insolvency, was having “very reassuring” discussions with banks about securing intermediate financing to continue with the project. Costain is owed £22m of revenue which it has already booked by AE&E Inova.
AE&E Inova’s board met on Tuesday and agreed to a “concept and structure” that ensured the continuation of projects until a longer term investor was secured. Costain said it had been informed by AE&E Inova that: “the concept includes bridge loan and bonding lines which carry us through the period needed to close with an investor,” and that “discussions with the banks regarding intermediate financing are now far advanced and very reassuring.”
AE&E has also told Costain it was involved in conversations with a number of strategic investors.
Costain said it was: “continuing active discussions with both AE&E Inova and Cory Environmental, for whom the Belvedere facility is a development project, regarding the financing and completion of the project.”
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