RE: Debt Manipulation ?!!?12 Mar 2019 16:18
@kenj
I can't vouch for those figures, but the following points may be of interest.
1. Kier have aimed at operating a 'roughly' 6 month cycle in investment. i.e. for all their ongoing projects, they cash out continuously and reinvest every 6 months. This leads to rises and dips.
2. The trough of those dips is dictated by the banks and how much they are happy to lend to Kier, which was previously dictacted by the assets Kier had as collateral against the debt.
3. However having that collateral is no longer enough to keep banks happy (in light of Corillian and Interserve)
3. Around the Autumn, the banks told Kier they had to reduce the 'trough' limit, and achieve that before the end of 2018, which was too quick for Kier to meet by changing their business model. Else they would stop lending.
Hence they performed a rights issue to raise money and raise the 'trough' limit.