Shares in beleaguered company fall 37% as it begins talks with Deutsche Bank to borrow a further £31.4m.
Shares in Jarvis crashed 37% to 7p yesterday as the troubled support services group admitted it was in talks to borrow another £31.4m.
In an announcement to the stock exchange the company said that it had agreed a deal to borrow the money from Deutsche Bank, “to meet its immediate and short-term funding requirements”.
News that the company needed more cash for survival came just two months after it secured a £17m emergency loan. Shares plummeted to a 7p low as the City was alarmed by Jarvis’ persistent need to borrow more money.
In the statement, Jarvis said that the loan was part of a wider financial restructuring of the firm which would include a debt-for-equity swap whereby the company’s lenders would swap some of its £280m debt for a stake in the company.
Jarvis also said that it was planning to raise £50m through a rights issue.