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Mouchel investors to receive 1p a share as banks poised to take control

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.

 

Readers' comments (6)

  • So I bought 500 shares in 2006 for £4.03 each and nice Mouchel is now ensuring I can "recover some value" by getting £5 for the lot. My faith all those years back was clearly wasted. Roll on the lawyers now to look into mismanagement and neglect at board level.

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  • Its a disgrace to see such a large firm lose so much value over the past year or so. Mouchel Management should have sold out to Costain when given the chance. I am a pissed off share holder too. I've lost £500, this is a shambles. The board should be replaced.

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  • I am a share holder with nearly 1500 shares when I bought them for just under £5 each at the height of the boom. What a waste of time investing with company you were once working with. The board has mismanaged the whole process and should be sacked. In my view Richard Cuthbert was the main culprit. He has now left the company, may be with good handout.

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  • The article says a *dividend* of 1p a share. It says nothing about losing the shares, only that the Banks will have "a majority interest".

    No; I don't understand either.

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  • I think this is what happens when some greedy directors more out of the deal!!!

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  • Surely shareholders have not lost 99p in the pound? They have gained 1p as a dividend, but their shareholdings now represent about half of their share of the company than they had before. They have not lost their shares.

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