WYG may be forced to come off the main market
ENGINEERING and design group White Young Green (WYG) may be forced to de-list from the London Stock Exchange as it tries to reorganise its finances.
The Leeds-based firm said that the group is continuing discussions with its lenders and advisers to see how it can reduce borrowings to levels that can be supported by current market conditions.
It said the options being considered were likely to result in a “material dilution” for existing equity holders, and as a result the group may not continue to satisfy the conditions for listing on the main market.
In a statement it added: “The options being considered aim to create a stable and long-term financial base, which should benefit clients and employees in the long-term, enable the group to be more competitive in its chosen markets and assist in delivering the group’s strategy.”
Last month WYG said it remained cautious about the future as it announced a number of board changes including the appointment of Mike McTighe as non-executive chairman and Graham Olver as group services director and company secretary.
It also confirmed that its lenders had once again deferred the covenant test date to the end of August while discussions to renegotiate its exsiting banking facilities continued.
A further deferral is expected to be requested.
