fourteenhundred1 Nov 2014 00:11
I have been considering the situation here and am convinced that the problems of the retentions have almost certainly resulted with PG and the other big investor being caught wrong footed. So they are probably in the same boat as small investors if this goes pear shaped. No reasons have been forthcoming as to why Costain will not pay the outstanding money but as most of the companies in the group are profitable what is needed is fresh capital to allow them to rid themselves of the contracts and procurement section. Then slowly the group could pay off its loans. As to Manchester if they refuse to pay close it down, or lay off the staff and invite Costain/ Manchester council to go to law. A decision will take years and allow more than enough time to reposition the rest of the assets out of reach.... For the big investors it may be cheaper to raise the loan than let it go into admin. They almost certainly will not get a lot back and in the event some or all the retentions are finally resolved it would go to the receivers.. As I have written this off whatever happens to get a few pounds back is a bonus. If it survives though it requires some much better management..