WYG urges shareholders to approve refinancing deal

WHITE Young Green (WYG), the Leeds-based design and engineering consultancy, is now waiting for shareholder approval for its proposed refinancing deal that will secure the firm’s financial future.

If the shareholders vote in favour of the refinancing deal, the group’s banks will convert some £53m of debt into equity and provide new lending facilities totalling £58.25m and €38m of committed bonding facilities to help put WYG on a strong and sustainable financial footing.

The deal will see WYG’s banks Lloyds, Royal Bank of Scotland and Fortis take a 60.5% ownership of the company while 24.5% will transfer to staff and management and 15% to existing shareholders.

As a result of this structure WYG’s listing on the stock exchange will be transferred from the main market to the Alternative Investment Market (AIM) with a new name – WYG.

Voting closes on January 4 next year and an Extraordinary General Meeting will follow on January 6 to seek final shareholder approval.

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.

“We need existing shareholders to vote in favour of the proposed refinancing agreement to create a stable, long term financial future for the company, secure around 2,700 jobs and create renewed confidence to our clients.”

The firm had been forced to extend its banking covenant tests several times while securing its future and closed offices and cut around 800 jobs as it restructured.

However, the group’s fortunes have been lifted with the announcement of annual profits of £12m before £141m in exceptional costs and other items.

In an interim statement for the period July 1 to November 18 the group said that despite a lack of confidence and liquidity there were also some encouraging signs in respect of opportunities and new contract wins.

WYG employs around 3,000 staff, 500 of which are based in Leeds.

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