Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Tue December 06 2016

Related Information
Related Information
Related Information
Related Information

News » Plant » Debt burden brings Hewden to the brink » published 21 Nov 2016

Debt burden brings Hewden to the brink

Loss-making plant and tool hire giant Hewden looks to be on the verge of collapsing into administration as it struggles to find new financial backers.

According to Sky News, Hewden’s owner Sun Capital Partners has already called on EY to become administrators.

Sun bought Hewden from Caterpillar dealer Finning in 2010 for £110m. Since then, employee numbers have been slashed from 1,300 to around 750 today.

Hewden made a pre-tax loss of £16.6m last year on turnover of £106m. The previous year it lost £13m.

Hewden urgently needs to re-finance around £190 million of debt with repayments about to become due but negotiations with potential backers have come to nothing.

In a statement at the end of October Hewden said: “Hewden has been impacted by market uncertainty following the vote to leave the EU. The vote has adversely affected a number of large construction and capital investment projects. The company is in constructive dialogue with stakeholders to resolve the situation in a consensual manner and is optimistic that a positive solution will be found. The company is working with its advisers Deloitte to reach agreement with lenders on an extension of its debt facilities, whilst also testing market appetite for a sale of the business.”

  

 

MPU

Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 21 Nov 2016 (last updated on 22 Nov 2016).

More News Channels