EY added $700 million in additional debt due to failed spinoff costs: Report | World News – Business standard

EY has taken on more than $700 million in additional debt to cover costs related to its failed plan to spin off its advisory unit, the FT said.

Borrowing at the accounting firm more than tripled from a year earlier to $983 million as of June 30, 2023, as it expanded an existing variable credit facility and closed a new one, the FT reported, citing accounts filed with Britain’s Companies House . . The additional debt was intended to ease the costs of the so-called Project Everest, which collapsed in April after partners fell out over key issues related to the deal.

EY recently asked Janet Truncale to take over as new CEO and help lead the company following the cancellation of the proposed split. She succeeds Carmine Di Sibio, who designed the Everest plan.

First print: February 12, 2024 | 12:33 pm IST