Construction and outsourcing firm Carillion has today updated the market on its discussions with creditors, contract wins and disposals, pushing shares up by more than 20 per cent at the open.
The contractor's share price was hammered last month after it revealed £200m of contract writedowns in its results for the first half of the year, when it reported a £1.15bn loss.
At the time, the group said a term sheet for further committed credit facilities of £140m had been agreed with five of the company's core lenders. Today, Carillion said this additional liquidity is "fully available to draw down now". The funds comprise a £40m senior secured revolving facility maturing on 27 April 2018, secured over shares in certain of the group's subsidiaries and over certain of the group's assets, and a £100m senior unsecured revolving facility maturing on 1 January 2019.
Meanwhile, Carillion has also agreed new committed bonding facilities, as well as the deferral of certain pension contributions and the deferral of repayment of private placement notes due in November 2017 and September 2018.
The group also said it sold a "large part" of its UK healthcare facilities management business to rival Serco for £50.1m, and added that it intends to dispose of the remaining contracts in its UK healthcare facilities management portfolio during 2018.
Carillion highlighted recent work wins, including a £200m contract with Gigaclear to build a broadband network in Devon and Somerset, and a £71m contract to design and build student accommodation for the University of Manchester.
"Today we are announcing progress on a number of fronts and whilst our customers and creditors continue to be supportive, much remains to be done," said interim chief exec Keith Cochrane.
"We remain focused on executing our disposals and cost savings programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion's balance sheet."