Jarvis gains lenders support

Manufacturing News, Source : TheManufacturer.com
Published : 30 Jul 2004 10:32

Engineering group Jarvis has announced its survival plans after gaining lenders support for another eight months.

Due to controversy over the Potters Bar rail crash Jarvis had fallen £246.7 million into the red due to the loss of £100 million worth of construction contracts.

As part of terms agreed with lenders, Jarvis will focus on UK rail activities and local authority services while scaling back accommodation services, selling off non-core activities and introducing £30 million in cost cuts.

A lending group will provide £25 million of additional banking facilities along with support through to March 25.

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