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Thu October 29 2020

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Costain keeps pushing on Belvedere payments

2 Dec 10 Costain continues to seek reassurances from its clients on the Belvedere waste-to-energy plant that it will get paid.

Fears began when the parent company of the main contractor, AE&E Inova, went into administration. Costain has a £120m subcontract on the job.

Costain has now been advised by the board of AE&E Inova that "the Board Directors on 30 November ratified a concept and structure that ensures the continuation of on-going projects until a new investor is secured. The concept includes bridge loan and bonding lines which carry us through the period needed to close with an investor". Furthermore, they advised that "discussions with the banks regarding intermediate financing are now far advanced and very reassuring. Negotiations with a number of strategic investors who have expressed great interest in our global business have been encouraging as well".

Costain is not entirely settled by these assurances and in a statement to the City this morning said that it was “continuing active discussions” with both AE&E Inova and overall client Cory Environmental, the developer of the Belvedere facility.

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MPU

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