The assets of British public services contractor Mouchel have been sold to a new firm owned by its lender banks and its management, after shareholders rejected an alternative restructuring plan, its administrator said on Saturday. The deal to sell the business to a newly incorporated company, MRBL Limited, means that all of Mouchel's subsidiaries will continue to trade as usual, administrator KPMG said.
---- Restructuring protects 8,000 jobs, subsidiaries unaffected
---- Lender banks RBS, Lloyds and Barclays take over business
Mouchel helps build and maintain Britain's motorways, roads and schools but struggled to recover from a 2011 dominated by contract blunders, management resignations, failed takeover bids and tough trading. Shareholders on Friday rejected a plan that would have seen its lenders swap 87 million pounds ($138 million) of existing debt for a majority stake in the company. Instead the company was put into administration and immediately sold to MRBL, whose owners include lenders RBS, Barclays and Lloyds Banking Group.
Under the original restructuring proposal shareholders would have been given a special dividend of 1 pence per share, but will now receive nothing. Mouchel Chief Executive Grant Rumbles said the restructuring would ensure the business's future and secure more than 8,000 jobs.
"With a stable and supportive ownership structure and a balance sheet that is fit for purpose, Mouchel will be in a strong position to rebuild the business and start winning large contracts again," Rumbles said. The company's shares had fallen from highs of around 485 pence in 2008 to 0.95 pence on Friday before trading was suspended.
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