Financing sources of Corus for restructuring watched over

Financing sources of Corus for restructuring watched over

According to market reports, the Anglo-Dutch steel producer will report an operating loss of around £41 million in the first half of the fiscal year, ending on June 30, 2003. Hence, investors are curious about how Corus is going to finance its extensive restructuring plan which includes a plant closure with a cost of £250 million and consolidation of production at three sites. It is speculated that Corus may do the rights issue, in case the cost has to be recovered within the shortest possible time or dispose some of its operations in Britain or sell off US operations, such as Corus Metals Profile and two service centers located in North America as previously reported in SteelOrbis. Another way is said to be the sale of non-core assets which Corus confirmed that it was considered as an option. The banking facility which was worth €1.2 billion and signed in early August, helped the Group to increase extra funding for its restructuring programme.