RNS Number : 1636J
25 March 2010
25 March 2010
Suspension of Trading and Appointment of Administrators
As announced in the Interim Management Statement of 17 February 2010, Jarvis plc (the "Company") has been impacted by economic conditions generally and, in particular, the very considerable reductions in rail and plant work volumes, meaning that trading conditions have been, and continue to be, difficult. During this period the Board has been focussed on improving the financial position and the long-term viability of the Company for the benefit of all of its stakeholders.
The successful achievement of this goal depended upon the continued support of key customers and creditors (including the lenders under the Company's secured working capital facility and Network Rail), and the ability of the Company to win new work. The recent success in being awarded the Chiltern Railway's Evergreen 3 Contract was therefore encouraging.
However, following negotiations with the Company's secured lenders, it has today become clear that sufficient support will not be extended to the Company to enable it to continue trading as a going concern.
As a consequence, the Directors now have no option but to take steps (together with the Company's secured lenders) to place the Company, and certain of its subsidiaries, into administration, and to request that trading in its shares be suspended with immediate effect.
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