Re AE&E & the Belvedere facil

RNS Number : 2254X

Costain Group PLC

02 December 2010

 



Costain Group PLC

("Costain" or "the Group")

Re AE&E Inova AG & the Belvedere facility

Further to the announcement issued on 29 November 2010, advising on the position regarding AE&E Inova AG ('AE&E Inova'), a Swiss-based company, with whom Costain has a £120 million sub-contract for a major part of the works at the Belvedere waste-to-energy facility, and the uncertainty in respect of assurances from AE&A Inova regarding future payments under the contract. Costain has received an update from AE&E Inova following their board meeting on 30 November 2010.

Costain has 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".

Notwithstanding this update, Costain is continuing active discussions with both AE&E Inova and Cory Environmental, for whom the Belvedere facility is a development project, regarding the financing and completion of the project.

Further announcements will be made as appropriate.

2 December 2010

Enquiries:

Costain Group PLC
Andrew Wyllie, Chief Executive	Tel: [phone]
Tony Bickerstaff, Finance Director
Graham Read, Communications Director
College Hill	Tel: [phone]
Mark Garraway
Adam Aljewicz

 

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