Construction Enquirer News Contractor gets more breathing space with extension to £10m bridging loan
Troubled civils contractor nmcn has agreed an extension with its lenders to a £10m bridging loan as the company looks to refinance the business and finally publish its delayed results.
The extension will “provide the company with the necessary time to finalise and announce its audited results for the financial year ended 31 December 2020 and publish its annual report and accounts along with its unaudited interim results to 30 June 2021.”
Nmcn is now looking to release results by September 27 alongside plans for a refinancing deal and a lifting in the suspension of trading in its shares.
Investment vehicle Svella revealed plans to take a controlling interest in nmcn following a £24m refinancing deal in June.
The contractor confirmed earlier this month that expected losses for last year are now expected to come in at £43m.
CEO Lee Marks said: “I would like to thank all stakeholders for their continued support of the Group as we move closer to delivering the refinancing. The new equity funding will strengthen the balance sheet and provide the necessary capital resource to steer the Group forward.
“The majority of our projects are performing well, with good prospects over the coming 12-18 months, however the refinancing will be the key to unlocking the Group’s potential. I would like to thank our dedicated workforce and our strong loyal customer and supplier base for their continued support as we work through this process.
Svella Chairman Andrew Tinkler added: “We continue to be very supportive and are working alongside the Company and investors to deliver the capital required within the coming weeks.
“The new equity will support the Group through this period and provide the necessary capital to deliver and execute in the short and medium term as the Group develops a five-year growth plan.”