Dutch Imtech group financial woes deepen

Aaron Morby 7 years ago

The Dutch parent company of Imtech UK has failed to strike a deal with lenders for extra credit forcing its large German subsidiary to file for insolvency.

The troubled engineering and construction giant said: “Royal Imtech is evaluating the current situation and its consequences and is considering all options.

“Royal Imtech will update the market as soon as possible more specifically on the consequences of these developments.”

Last week the heavily indebted group set out a new financing plan after making a first-half operating loss of 50m euros on sales down 8% at 1.8bn euros.

But it revealed yesterday it had failed to reach agreement with lenders for additional funds for both the group and German subsidiary forcing its to file for insolvency of Imtech Germany.

Dutch bank SNS analyst Edwin de Jong told Reuters: “We have no clue of how this is going to play out, but we believe that whatever the solution will be, it will be at the cost of shareholders” .

Analysts had warned that options had become limited for Imtech as it would have faced an uphill battle selling operations at short notice, and a share issue would be a tough sell.

Imtech shares have lost 99% of their value since the company revealed big writedowns at its Polish and German operations in 2013 and an accounting scandal led to hundreds of millions in losses and a management reshuffle.

Imtech’s reputation in Germany continued to suffer amid a bribery investigation and a later cartel investigation, after reports it conspired to overcharge energy company RWE for the building of a power plant.

A 600 million euro rights issue in 2014 failed to attract sufficient investors and underwriters were left holding 47% of the stock.

Imtech UK ran up a loss of £1.5m on turnover of £460m in 2014 blaming several loss-making contracts. The UK management streamlined the business cutting UK headcount to 2,850 staff, but in the latest parent company results for the first half of 2015 warned of further losses after completing several larger older contracts and market related start-up delays of new projects.



Latest news

Civils boss banned for £200k false Covid loans

Yorkshire plant hirer and civils boss wrongly claimed bounce back loans for four firms
2 hours ago

Green light for Skanska £507m A428 dualling job

Construction is due to start at the end of this year on 16km dualling job
2 hours ago

W Stirland set for administration after nearly 100 years of trading

Family-run south coast firm has been building since 1928
16 hours ago

BAM UK delivers steady first half growth

UK profit up 16% to around £40m from revenue at £1bn
16 hours ago

Crane hirer M&M enters voluntary liquidation

Family-owned mobile crane ceases trading amid soaring costs and depressed hire rates
16 hours ago

£161m funding for Oxford Railway station revamp

Kier to deliver first project under the new Rail SPEED initiative
16 hours ago

VolkerFitzpatrick wins 240km wind farm cable job

Contractor lands connections deal from energy giant Ørsted
16 hours ago

Seddon Construction returns to profit

Plan to target more diverse work pays off as construction revenue rises 27% to £166m
16 hours ago

Faults found on giant HS2 green tunnel segments

"Quality issues" found on precast segments at HS2 site pioneering off-site construction
2 days ago

Balfour Beatty UK construction returns to profit

Group profits double to £82m in first six months after construction arm bounces back
2 days ago

Bidding starts for £4.5bn Southern Construction Framework

5th generation deal includes new £1m-£5m lot for south west
2 days ago

Persimmon expands output at off-site factories

Housing giant hits 31% profit margin with another £750m returned to shareholders
2 days ago

Modular specialist Algeco lands £31m MoD double

Construction to start this year on two new sets of army barracks
2 days ago

Hill gets go-ahead for North London estate rebuild

750 homes to be built at Douglas Bader Park estate in Colindale
3 days ago

Bid race for £210m Huddersfield town centre revamp

Kirklees Council's Cultural Heart scheme will be split into two major projects
3 days ago

£100m Darlington Station revamp enabling works start

Willmott Dixon set to deliver major station upgrade project
3 days ago

Demolition worker gets huge payout after losing leg

Compensation settlement will fund latest prosthetic limb technology for site victim
3 days ago

Plant hirer Vp abandons sale plan

Chairman Jeremy Pilkington says the plant hirer failed to find a suitable new owner.
3 days ago

Turner & Townsend on board for Sheffield Supertram upgrade

Consultant to help deliver programme over next seven years after £570m funding deal
3 days ago

Green light for new £33m Ipswich logistics park

Construction to start this October on latest Trebor Developments site
3 days ago

Piling starts on pioneering double composite HS2 viaduct

Wendover Dean Viaduct ‘double composite’ structure will halve carbon emissions
3 days ago

ISG pauses work on £300m gigaplant

Construction work rescheduled to reduce costs at giant car battery plant
4 days ago

Tory leadership battle delays bidding for HS2 phase 2a

Prequalification for £5.2bn-£7.2bn route to Crewe put back to September
4 days ago

Greswolde Construction goes under

Solihull contractor ceases trading with 24 jobs lost
6 days ago

Hanson on track for UK’s first net zero cement works

20 carbon capture projects shortlisted for £1bn funding
4 days ago

Plan in for Nottingham 967-room student scheme

Vita submits plan for second major purpose built student sh
4 days ago

Galliford Try gets go-ahead for next A47 dualling job

Early 2023 start for £200m section of A47 between North Tuddenham and Easton in Norfolk
4 days ago

Designs revealed for £1bn London Blackfriars tower blocks

Fosters design landmark green office skyscraper and two blocks of flats for Southwark site
7 days ago

Everton stadium job still on budget despite inflation

Club and Laing O'Rourke confident they can still build new ground for £500m
7 days ago

Construction output falls 1.4% halting 7-month growth spurt

Fresh output and orders figures confirm summer construction slowdown
7 days ago

Contractor services