Carillion PLC (LON:CLLN) has said it is still in discussion with stakeholders regarding its options to reduce debt and avoid a breach of debt covenants and expects to take action in the first quarter of 2018.
In a statement, the troubled construction contractor which has seen its market value plunge by 90% after three profit warnings this year, said: “As previously indicated, Carillion is in continuing constructive discussions with stakeholders regarding its options to reduce net debt and recapitalise and/or restructure the Group's balance sheet.”
It added: “These discussions are progressing well, and the Board still expects to determine the approach and to commence steps to implement the chosen option during the first quarter of 2018.”
Carillion also said it has now received all necessary consents and the deferral of its financial covenants has become effective.
Keith Cochrane, Carillion's interim chief executive, said: "We believe that our lenders' decision to defer the test date demonstrates their continuing support. We remain focused on actively progressing a constructive dialogue with our financial stakeholders on the Group's recapitalisation plans."
Earlier this week, Carillion shares got a boost from news its new chief executive will take the helm three months earlier than previously agreed to aid the turnaround of the troubled UK contractor.
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Andrew Davies will step down as chief executive of UK construction property services firm Wates Group to join Carillion as its new boss on 22 January, instead of April 2 as announced in October.