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Wood Group throws Amec a £2.2bn life raft

Wood Group throws Amec a £2.2bn life raft

All offshore oil services groups have had a tough time adjusting to lower energy prices, and none more so than Amec Foster Wheeler (AMFW). Swamped by debt, hamstrung by operational overreach and hammered by the lower margins and thinner project pipelines offered by its clients, the London-listed company was in dire need of fresh cash. An asset disposal programme was set to claw back £246m by the middle of this year, but it was not going to be enough. Many investors were anticipating a rights issue, the hint of which in a trading statement last October wiped more than a fifth from the company's share price.

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