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Last Updated: Monday, 31 January, 2005, 08:30 GMT
Jarvis secures refinancing deal
London Underground train
There's light at the end of the tunnel for Jarvis
Troubled engineering and construction group Jarvis has avoided financial meltdown after refinancing a number of construction contracts.

Jarvis has secured 110m ($207m) of refinancing on all 14 of its Private Finance Initiative (PFI) deals.

The firm also announced that it had agreed a one-year extension to its banking facilities.

"The completion of these transactions draws a line under Jarvis' troubled financial history," the group said.

Jarvis added it had completed the sale of its share in London underground consortium Tube Lines. The sale of the 33% stake for 146.8m to Amey, which is owned by Spain's Ferrovial, was announced last month.

Jarvis, saddled with a debt mountain of 240m, had previously warned that without refinancing it would collapse.


Last month the beleaguered group said it had hit the "nadir" of its fortunes after posting a first-half loss of 283m ($549m).

It warned that without refinancing it would run out of working capital and would cease to be a going concern.

The company had overstretched itself by bidding for a large amount of Private Finance Initiative (PFI) contracts.

In a bid to get back on track, Jarvis has recently been selling assets to focus on its new core businesses.

Chief executive Alan Lovell, said the refinancing agreement enabled Jarvis "to focus on the future development of our promising core businesses of rail, roads and plant hire."

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