Costain told main contractor AE&E Inova has refinancing plan

Contractor Costain has received assurances from the troubled main contractor over the 拢120m Belvedere waste-from-energy facility over the 拢22m it is owed on the job.

Costain said the main contractor, AE&E Inova, who鈥檚 Austrian parent company has filed for insolvency, was having 鈥渧ery reassuring鈥� discussions with banks about securing intermediate financing to continue with the project. Costain is owed 拢22m of revenue which it has already booked by AE&E Inova.

AE&E Inova鈥檚 board met on Tuesday and agreed to a 鈥渃oncept and structure鈥� that ensured the continuation of projects until a longer term investor was secured. Costain said it had been informed by AE&E Inova that: 鈥渢he concept includes bridge loan and bonding lines which carry us through the period needed to close with an investor,鈥� and that 鈥渄iscussions with the banks regarding intermediate financing are now far advanced and very reassuring.鈥�

AE&E has also told Costain it was involved in conversations with a number of strategic investors.

Costain said it was: 鈥渃ontinuing active discussions with both AE&E Inova and Cory Environmental, for whom the Belvedere facility is a development project, regarding the financing and completion of the project.鈥�

 

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