Troubled building and infrastructure services company, Hastie Group Ltd (ASX:HST), has announced capital restructuring measures aimed at reducing its existing debt levels.
Subject to certain conditions being fulfilled, private equity funds managed by a unit of Lazard Ltd are considering a potential recapitalization of the debt-laden company via an equity raising.
Hastie and LCW Private Equity have agreed to work exclusively towards a deal that could see LCW Private Equity potentially become a cornerstone investor.
Hastie Group’s market capitalisation has fallen from more than $1 billion at the end of 2007 to around $57 million, with its shares last trading at $0.24.
In the first half of the 2011 financial year Hastie Group recorded a net loss of $93.3 million, falling from a profit of $22 million the same time a year earlier.
