Firm due to meet lenders tomorrow about bailout
Carillion has said it does not know why its share price shot up more than a quarter yesterday.
The stricken contractor saw its price close 26% up on Friday鈥檚 trading following news over the weekend the firm will meet banks this week including Barclays, HSBC and Santander about a potential refinancing deal.
But the firm issued a statement to the Stock Exchange this morning and said: 鈥淭he Group is not aware of any material developments that support this share price increase.鈥�
The Wolverhampton-based business is due to meet lenders tomorrow about a rescue package with speculation growing that it will have a recovery plan in place by the time new chief executive Andrew Davies joins the business in less than two weeks鈥� time.
Just before Christmas, the firm said it was in 鈥渃onstructive discussions with stakeholders regarding its options to reduce net debt and recapitalise and/or restructure the Group鈥檚 balance sheet. These discussions are progressing well.鈥�
It added that it expected a rescue package, likely to be a debt for equity swap, to be completed by the end of March.
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