BGN Entrepreneur

Car parts and aircraft engineering firm GKN has announced plans to raise £423 million in a rights issue as it looks to reduce its debt mountain. GKN has seen its debts mushroom to £928 million ever since the beginning of 2008 with the decline in sterling and the acquisition of a wing comoponent business on the Airbus site in Filton.
The rights issue plans came as the firm said it had seen a ten per cent drop in revenues in the five months to May 31 compared with the same period last year. GKN said it was accelerating its workforce reduction plans announced in February and that its troubled car arm would be further hit by production cuts at Chrysler and General Motors.

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