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<\/a><\/div>\n<\/div>\nHe said the firm was now progressing talks with a mystery buyer for Forrest’s profitable housing maintenance and energy operations.<\/p>\n
The\u00a0Enquirer<\/em> understands Engie, which bought Keepmoat’s regeneration business two years ago, is about to seal a deal for the operations that represent just over two-thirds of last year’s \u00a383m revenue.<\/p>\n A deal with Engie could save many of the 400-plus workforce jobs.<\/p>\n \n But questions remain about what will happen to the once expanding new build division, which raced to \u00a326m revenue on the back of the North West boom in build to rent projects.<\/p>\n Forrest’s financial problems came to a head last week when work stopped at the building businesses major sites in Manchester and Liverpool.<\/p>\n Part of the group’s cashflow problems come from three major Manchester building jobs:\u00a0Citu NQ City in the Northern Quarter and developer X1’s Plaza and Gateway schemes.<\/p>\n Forrest agreed its last financial restructuring in March 2017 after racking-up pre-tax losses of nearly \u00a326m in two years.<\/p>\n X1 Gateway scheme in Salford Quays<\/p>\n<\/div>\n Reid said:\u00a0\u201cOver the last few weeks our efforts have been focused on trying to secure a refinance deal and the various contingency plans for the business.<\/p>\n \n \u201cIt has been an extremely difficult period and, unfortunately, we have not been successful in securing new funds.<\/p>\n “The debt markets remain cautious of the construction sector and this combined with a level of cautiousness relating to the challenges the business faced prior to the March 2017 refinance, meant that it wasn\u2019t possible to secure new debt finance.<\/p>\n “Our shareholders also attempted to find an equity solution, but all options would have required some new debt funding.”<\/p>\n Reid added: \u201cWe have also been going through a due diligence process with various parties interested in the energy and refurbishment side of the business, which has performed well over recent years.<\/p>\n \n “A number of offers have been received and we will be finalising agreements for the disposal of these divisions over the coming weeks. This transaction will be covered under TUPE and all staff working on those contracts which are successfully novated will transfer.<\/p>\n \u201cI would like to extend my thanks to the entire Forrest team, our customers and suppliers for their continued patience in what has been an extremely challenging period. We are continuing to work with FRP Advisory throughout the process.\u201d<\/p>\n Yesterday management told staff it would honour all payroll commitments.<\/p>\n \n<\/a><\/div>\n<\/div>\n
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