WYG covenant test date extended once again

WHITE Young Green (WYG), the Leeds-based engineering and design group said today that the test date for its financial covenants has been extended once again.

The date has now been deferred to October 31 while discussions continue with the group’s lenders.

The extension enables WYG to continue discussions with its lenders to see how it can reduce borrowing to levels that can be supported by current market conditions.

WYG said that it had made significant progress in discussions with its lenders and that terms regarding a new financing structure were currently at an adavanced stage, although proposals are subject to further negotiation and final agreement.

It added that as previously announced, the group may be forced to de-list from the London Stock Exchange as options being considered were likely to result in “material dilution” for existing equity holders.

As a result the group may not continue to satisfy conditions for listing on the main market.

It said a further announcement would be made in due course.