WYG hails new beginning following deal
DESIGN and engineering consultancy group WYG today hailed the completion of its refinancing deal as the “beginning” of the next stage of its development.
The group’s restructuring saw a debt-for-equity swap in which shareholders in the Leeds-based business accepted a significant dilution of their stakes by approving the plans.
The alternative would have meant their shares being worth nothing and the business probably being placed into administration with the loss of 2,700 jobs.
Now WYG – which has rebranded from White Young Green – embarks on what chief executive Paul Hamer sees as as opportunity for the stronger group to “rebuild shareholder value”.
The refinancing will see it move to the Alternative Investment Market (AIM) where its shares will commence trading at 8am tomorrow.
The group has worked on major construction projects in Yorkshire including new 
stands at York Racecourse and Yorkshire County Cricket Club’s Headingley Carnegie ground.
The refinancing deal has seen the group’s banks – Lloyds, The Royal Bank of Scotland and Fortis Bank – convert around £53m of debt into equity and provide new lending facilities of £58.25m and €38m of committed bonding facilities.
The banks have taken 60.5% ownership of the company, while 24.5% has gone to staff and management and 15% to existing shareholders.
Mr Hamer added: “The admission of the company’s post-consolidation existing and new ordinary shares to AIM marks the end of WYG’s financial restructuring and the beginning of the next stage of the company’s development. WYG now has a stronger capital structure and is better placed to withstand the challenging market conditions that we continue to face as we seek to rebuild shareholder value.”
Mr Hamer told TheBusinessDesk.com last month that part of WYG’s strategy would involve growing its overseas business. WYG presently operates in more than 40 countries.
