Consultant Mouchel has agreed a restructuring deal that will give its banks majority interest in the firm via a debt for equity swap, it announced today.
The deal will result in shareholders being given a special dividend of 1p per ordinary share upon completion of the restructuring. In a statement the firm said that its Board had sought to ensure that shareholders “recover some value” from their investment.
The terms of the deal will involve the banks – RBS, Lloyds Banking Group and Barclays – together releasing £87M of the Mouchel’s existing debt for a majority interest, leaving it with £60M outstanding debt. Without a restructuring deal, the firm expects to default on its loans on 30 August.
“The Board believes that the restructuring is the best available means of preserving the Group’s business, including safeguarding its existing customer contracts and job security for more than 8,000 employees, and represents the only viable and deliverable option for delivering value to Shareholders,” said the statement. “The restructuring, achieved with the support of the company’s lenders … will enable Mouchel to continue with business as usual.”