EY Borrowed About $700 Million More on Failed Spinoff Costs (1)

EY took on about $700 million in extra borrowing to deal with costs related to its failed plan to spin off its consulting unit.

Current loans at EYGS LLP — the entity that provides services to the network’s member firms — more than tripled from a year earlier to $983 million as of June 30, 2023, according to accounts filed with the UK’s Companies House. The firm expanded an existing credit facility and also entered into a new one during the period.

The extra debt will help spread the costs incurred by the firm’s examination of a split of its ...