PracticeConsultingCFO resigns at Kvaerner group

CFO resigns at Kvaerner group

Kvaerner, the Anglo-Norwegian engineering group, has appointed an acting chief financial officer after incumbent John Charlton resigned over the weekend.

The company, which has been hit by cash flow crisis and debt problems, installed Finn Berg Jacobsen, a former Arthur Andersen partner, as its new acting CFO. He is expected to hold the position with Kvaerner for a period of six to nine months.

Kvaerner said Charlton had decided to resign for ‘personal reasons’, but would continue to assist the group on an advisory basis. He is the second senior management figure to resign recently from the company. Last week president Kjell Almskog announced his impending resignation following a collapse in the company’s share price.

Reports in the media, suggested the company, which employees 35,000 people in 35 countries and is Europe’s biggest shipbuilder could face bankruptcy after its share price fell 77% on the Norwegian stock market last week.

But on Wednesday Kvaerner announced a financing package that it said would solve its cash flow crisis and end international construction and engineering concern.

The repayment date for a Pounds 62m loan has been put back to 31 December from 19 September, and the company is working on securing a long-term loan package. One of the conditions for the loan is that issue new shares for at least Pounds 78m.

The board has proposed a share issue double that size.

The company reported profits of 110 million kroner (Pounds 8.4m) for last year, compared with a loss of Pounds 57m in 1999, but still has debts totalling Pounds 746m.

Links

Kvaerner Group

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