Lloyds Banking Group has said its strong relationship with White Young Green was vital to last week鈥檚 rescue deal with the consulting engineer

Speaking after Lloyds led a consortium of lenders to agree a complex restructuring of WYG鈥檚 estimated 拢100m debt-pile, Duncan Parkes, managing director of corporate and commercial business support at Lloyds, said: 鈥淲e鈥檝e demonstrated how our relationship approach can reap rewards and how it is possible for businesses to overcome challenges and position themselves for continued growth.鈥�

Under the terms of the deal, the banks, which also include RBS and the Belgian-Dutch bank Fortis, will take control of 60% of the company by means of a share issue and debt-for-equity swap and the company鈥檚 debt will halve to about 拢50m.

Paul Hamer, chief executive of WYG, said: 鈥淭he banks realised it was a people business and are buying into us as part of a three-to-five-year play. It鈥檚 not about coming and taking their money out quickly.鈥�

Another senior banking figure underlined the importance of a bank鈥檚 belief in a consultant鈥檚 management team because such business were only as good as their people. 鈥淚f the relationship is there, it鈥檚 actually quite difficult to push a consultant under, as WYG has demonstrated.鈥�

Hamer added that the company plans to change its name from White Young Green to WYG. 鈥淲e want to visibly demonstrate a move into the future,鈥� he said.

In the year to 30 June, the company鈥檚 results were hit by writedowns of 拢141m. More than 拢77m of that figure related to goodwill on a string of acquisitions the company made before Hamer took over.

It spent 拢85m buying 18 companies over five years in what some observers thought were questionable markets, such as Ireland. It resulted in a pre-tax loss of 拢129m as turnover fell 7% from 拢282m to 拢262m.

Hamer said: 鈥淭his has been about clearing out a historical legacy. This announcement is the first word in the new chapter and will see WYG recreated with a newer, stronger identity that will drive value into the business.鈥�

The company also announced plans to raise 鈧�38m (拢34m) on the bond market to fund overseas growth in areas such as central and eastern Europe, the Gulf, Africa and Turkey.

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