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Debt-ridden Jarvis looks for swap with Deutsche Bank

NEWS

JARVIS shareholders could be left with less than 5 per cent of the company under the terms of a debt-for-equity deal being struck with Deutsche Bank.

Under the terms of the debt-for-equity swap, the bank could own over 95 per cent of the struggling support services firm.The deal would raise £50 million in equity from the shareholders of the enlarged group.

Jarvis said: 'The precise form of the debtfor-equity conversion is still being discussed but it is likely that it would leave existing shareholders with 5 per cent or less of the equity value of the group following the conversion, depending on the structure that is implemented.'

Jarvis has shed hundreds of jobs since losses of more £250 million on construction projects prompted a radical restructure by chief executive Alan Lovell. It is now concentrating on core road and rail markets.

The firm, once valued at more than £1 billion, has around £280 million in debts and saw its share price fall to 7p this week.

The firm has also reached agreement in principle with Deutsche Bank for shortterm loans of up to £31.4 million.