Refinancing proposals including debt-for-equity swap should avoid insolvency and save 2,700 jobs
White Young Green (WYG) has sent a letter to shareholders asking them to support its refinancing proposals.
The move will secure 2,700 jobs and avoid insolvency for the engineering consulting group.
Under the proposals, which include a debt-for-equity swap, WYG's banks will provide new lending facilities of £58.25m and raise €38m (£34.4m) on the bond market for international growth.
The group's banks will buy 60.5% of its shares, while 24.5% will go to staff and management, and 15% to existing shareholders.
The move will mean WYG transferring from the main stock market to the alternative investment market.
Paul Hamer, chief executive of WYG, said: “The purpose of the refinancing is to reduce the level of the group's debt and to create a strengthened and more appropriate financial structure that we can use as a platform to build a sustainable, strong and resilient long-term business that is better positioned to compete more effectively in its chosen markets.”
Voting will close on 4 January 2010 and final shareholder approval will be sought in a meeting on 6 January 2010.
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