Carillion has announced that its financial stakeholders have agreed to the deferral of its financial covenants as part of ongoing discussions.

The company announced on 17 November 2017 that it had started the process to seek the necessary consents to amend the relevant agreements to defer the test date for both its financial covenants from 31 December 2017 to 30 April 2018.

Carillion said it has now received all necessary consents and the deferral of its financial covenants has become effective.

Carillion said in its latest update that it is in continuing constructive discussions with stakeholders regarding its options to reduce net debt and recapitalise and/or restructure the Group’s balance sheet.

The discussions are progressing well, the firm said, and the Board still expects to determine the approach and to commence steps to implement the chosen option during the first quarter of 2018.

Keith Cochrane, Carillion’s Interim Chief Executive, commented:

“We believe that our lenders’ decision to defer the test date demonstrates their continuing support.  We remain focused on actively progressing a constructive dialogue with our financial stakeholders on the Group’s recapitalisation plans.”