Richard Heis, Ed Boyle and Jane Moriarty of KPMG have been appointed Joint Administrators to Mouchel Group plc, the infrastructure and business services group. Immediately following their appointment, the administrators sold the business to MRBL Limited, a newly incorporated company to be owned by affiliates of Mouchel Group’s lenders - RBS, Lloyds Banking Group and Barclays - and the Group’s management team.
The deal means that all of the Group’s trading subsidiaries will continue to trade with no interruption to their businesses. No other company in the group will enter administration and suppliers, customers and employees are not expected to be materially affected. With the exception of the lenders, Mouchel Group plc has no known creditors.
Mouchel Group plc announced its intention to restructure the business on 1 August, proposing a restructuring plan which included a debt for equity swap, the payment of a special dividend to existing shareholders and the cancellation of existing shareholders’ equity. Today, at the company’s general meeting, the shareholders of the business rejected the proposed restructuring plan, and the directors consequently applied to court for an administration order.
Richard Heis, joint administrator and partner at KPMG, said: “A fall in profitability meant that the business could no longer service its debt facilities. Restructuring the balance sheet in order to reduce the debt and secure ongoing funding was essential to secure the future of the business.
“Following the rejection by shareholders of the company’s proposed restructuring plan, the sale via “pre pack” was required to provide the business with as much stability as possible by quickly securing a new owner and finance for the business. It has ensured continuity for the business’ subsidiaries, their suppliers, customers and 8000 employees, whilst enabling the business to restructure, putting it on a stable footing for the future.”
Notes to editors:
For more information regarding the administration, please contact: firstname.lastname@example.org
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For further information on the acquisition, and information about Mouchel including office locations and staff numbers, please use the contact facility at the following web address: www.mouchel.com
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.