黑洞社区

White Young Green鈥檚 attempt to pull off a rescue deal is being held up because its banks are 鈥渕assively overstretched鈥�, according to Paul Hamer, the consulting engineer鈥檚 chief executive.

As a result of the recession, WYG will breach a banking covenant next month unless it agrees terms on its estimated 拢91m debt with Lloyds Banking Group, RBS and Belgian-Dutch bank Fortis. Talks began 12 weeks ago.

Paul Hamer, chief executive, White Young Green

Speaking after a trading update this week, Hamer (pictured) said: 鈥淲e are not a priority for them, which is good in one way because it shows there are plenty of other businesses out there in a worse state. We have to be patient but it is frustrating when you are pushed to the back of the queue.鈥�

The bank deal is one element of Hamer鈥檚 three-part plan to put WYG on firmer footing since he took over the reins in January.

He also plans to restructure the company and raise an estimated 拢40m from investors.

He said: 鈥淲e鈥檙e about 75% through the process of making the business more efficient, which will include further headcount reductions.鈥� This week WYG announced 324 job losses. By June 800 staff will have been shed, leaving it with 2,700.

Once the restructuring and the bank deal is in place, the company will seek about 拢40m from investors. Hamer said there could be an announcement in September on the equity raising.

As part of the company鈥檚 plan to move 50% of its turnover overseas by 2012, it is looking at markets in Saudi Arabia, Oman, Qatar and China. Hamer said: 鈥淥ur plans in Saudi are in their early stages and we鈥檝e only just started to look at China.鈥�