White Young Green granted more time by its bank to negotiate its terms of lending as two new board members join.
The company is suffering from debts fuelled by an acquisition spree, the firm buying some 38 businesses over the last ten years, combined with falling profits which saw the firm recently warn that it was to close to breaching its banking covenants.
As part of the negotiation process, WYG’s lenders originally agreed to defer the covenant test date from the year end date initially to 31 July 2009. The covenant test date has been deferred again to 31 August 2009 whilst discussions continue and the Board expects that a further deferral of the covenant test date is likely to be requested.
“This is the second time the covenant [test] has been rolled, which shows the banks are supportive,” said WYG chief executive Paul Hamer. “But they recognise that we don’t have the right capital structure in place. We’ve got to make sure that we find the right capital solution rather than the quickest.”
In addition WYG has announced two senior appointments to the company’s Board.
Mike McTighe has been appointed as Non-Executive Chairman and Graham Olver as Group Services Director and Company Secretary.
Mike McTighe is currently chairman of Pace plc and Volex Group plc, a member of the board of Ofcom and chairman of a number of private companies. Previously he was chairman and CEO of Carrier I International S.A., and before that the executive director and chief executive, Global Operations of Cable & Wireless plc.
Graham Olver was previously commercial & operations director at Skanska infrastructure development, the infrastructure development and investment division of Skanska AB. Prior to that he worked with Thames Water and ALSTOM in commercial and legal roles.
Brian Duckworth, the current non-executive chairman will leave the Board on 3 August, and Plc non-executive director, John Richardson, will be leaving the Board following the next Annual General Meeting.