Kvaerner reveals rescue plan

Kvaerner says it has reached a deal to save the company from collapse.

Kvaerner says it has reached a deal to save the company from collapse.

It says an agreement with Yukos Oil, its largest shareholder, and a group of Norwegian and international banks is a "complete solution" to its problems.

The announcement ends tense negotiations over the fate of Kvaerner.

Yukos will back a £230m rights issue for Kvaerner, which will also convert £350m of unsecured debt into 10-year loan notes.

Banks have agreed to provide £16m to shore up the company.

The deal is good news for Kvaerner's 35,000 workers.

Kvaerner employs around 7,000 people in the UK, including 1,500 in Aberdeen; 1,500 on Teesside; and 800 on the Solent in Hampshire.

Company chairman Harald Arnkvaern said: "This is a solution that mirrors the efforts of many parties who have genuinely wanted to find a long-term solution for Kvaerner.

"The foundations that have now been established should also make it attractive for investors to participate in the rights offering."

Kvaerner's has now been re-listed on the London Stock Exchange.

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