Lloyds Banking Group has said its strong relationship with White Young Green was vital to last week’s rescue deal with the consulting engineer

Speaking after Lloyds led a consortium of lenders to agree a complex restructuring of WYG’s estimated £100m debt-pile, Duncan Parkes, managing director of corporate and commercial business support at Lloyds, said: “We’ve demonstrated how our relationship approach can reap rewards and how it is possible for businesses to overcome challenges and position themselves for continued growth.”

Under the terms of the deal, the banks, which also include RBS and the Belgian-Dutch bank Fortis, will take control of 60% of the company by means of a share issue and debt-for-equity swap and the company’s debt will halve to about £50m.

Paul Hamer, chief executive of WYG, said: “The banks realised it was a people business and are buying into us as part of a three-to-five-year play. It’s not about coming and taking their money out quickly.”

Another senior banking figure underlined the importance of a bank’s belief in a consultant’s management team because such business were only as good as their people. “If the relationship is there, it’s actually quite difficult to push a consultant under, as WYG has demonstrated.”

Hamer added that the company plans to change its name from White Young Green to WYG. “We want to visibly demonstrate a move into the future,” he said.

In the year to 30 June, the company’s results were hit by writedowns of £141m. More than £77m of that figure related to goodwill on a string of acquisitions the company made before Hamer took over.

It spent £85m buying 18 companies over five years in what some observers thought were questionable markets, such as Ireland. It resulted in a pre-tax loss of £129m as turnover fell 7% from £282m to £262m.

Hamer said: “This has been about clearing out a historical legacy. This announcement is the first word in the new chapter and will see WYG recreated with a newer, stronger identity that will drive value into the business.”

The company also announced plans to raise €38m (£34m) on the bond market to fund overseas growth in areas such as central and eastern Europe, the Gulf, Africa and Turkey.

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