Talk to us today in confidence0800 970053907833 240747

Mouchel looking at pre pack administration

30 July 2012

Update.  1st August 2012.  Mouchel go for a debt for equity swap

Mouchel Group, one of the country’s largest support services groups employing 8,500 people and

which manages traffic on the UK's motorways through roadside screens  has been  in last minute talks with its bankers, according to reports.  This in a bid to stave off administration as it groans under a debt pile of £180m.  Talks with the major lenders to the group – Royal Bank of Scotland, Lloyds and Barclays – have been underway for months.

Mouchel, has seen its value fall in the past 12 months. The company is now worth under £3m. This is a dramatic fall having been valued at more than £500m in 2008 and rejecting a £330m takeover bid from VT Group in 2010.

A ‘ pre-pack administration ’ is being looked at, but a debt-for-equity swap with the banks, where the lenders take a stake in the group is the most likely option.  At an operating level the group is seen as being profitable, and it is a sizeable business, so it will have a future in some form or another.

Mouchel has an order book of £1.1bn.  However it is the onerous terms on the company debt that is causing the problems.

Categories: Pre Pack Administration