Details of the refinancing deal were contained in a Companies House filing for subsidiary Laing O’Rourke Holdings.
Group Chairman Ray O’Rourke confirmed the extra bank funding to staff last week as he plans to unveil a new five-year business plan to turn performance around at the UK’s largest private contractor.
Accounts for Laing O’Rourke Holdings state that “during 2015 the group experienced challenging financial and trading circumstances in particular in respect to certain problem contracts, which culminated with the group being refinanced on April 14 2016.”
The funding deal is subject to conditions relating to “liquidity, tangible net worth and the requirement that the estimated final margin on a specific project is not below a certain amount.”
Breaking the covenants will result in a default on the loan.
The company declined to name the project involved but it is understood to be a single legacy contract.
A source close to O’Rourke said the Board was “confident that the risks are all manageable.”
A Laing O’Rourke spokesman said: “We are pleased that our financial stakeholders have shown significant support for our business plan by agreeing additional facilities through to October 2018.
“In agreeing these new facilities it is standard practice to identify appropriate business risks and opportunities.
“The Group never comments on the commercial performance of individual projects.”