Jarvis seeks £17m ahead of revamp

JARVIS has gone cap in hand to its bankers for another £17m as the ailing support services group shores up working capital ahead of its long-awaited financial restructuring.

Chief executive Alan Lovell warned again today that restructuring £280m debt was likely to include a sizeable debt-for-equity swap.

He refused to reveal what the extra £17m was for - other than to blame 'timing issues' - but said lenders were supportive of the move.

Jarvis will decide in the next month on the format of its restructuring. Lovell said it was always the intention that banks would take some of the equity.

A 'strategic' investor may also come on board but existing shareholders were also likely to be given the chance to hold on to a stake. Lovell added: 'Our objective is to strengthen the equity base and reduce the level of debt.'

Lovell joined the company in October and has already negotiated a oneyear extension to the group's bank facilities, running to March 2006.

Jarvis shares fell 1p to 16p.