Consultant Mouchel has fallen into administration today following a protracted battle by the firm to try return to health.
The firm released a statement which said that trading of its shares had been suspended immediately and that the Board now intends to apply to the High Court for the appointment of an administrator.
The circumstances had been forced because shareholders this morning rejected a restructuring plan that had been agreed with the banks earlier this month and would have left them with a special dividend of just 1p per share.
“The Board expects that the administrators will be appointed immediately following the application to the High Court for their appointment and that, following their appointment, the administrators will immediately sell the Company’s assets (including all the Mouchel group companies) to a newly incorporated company,” said the statement. “It is expected that following completion of the Alternative Plan, this newly incorporated company will be owned by affiliates of the Company’s existing lenders (RBS, Lloyds Banking Group and Barclays) and management.
“It is not intended that any company in the group, other than the Company itself, will enter in any form of insolvency process which means that no employees, customers or suppliers are expected to be materially affected and all of Mouchel’s trading subsidiaries will continue to trade as usual. Shareholders will not receive any value for their shareholding from the Alternative Plan.”