Mouchel in rescue deal to save 8,000 jobs

30/03/2017
Highways Reporters

Mouchel has struck an eleventh-hour deal with its lenders for a financial restructuring that will keep the consultant trading and protect 8,000 jobs.


But shareholders will see their stakes virtually wiped-out with a special dividend of 1p a share the only return before shares are delisted and rendered worthless as the company goes private.

Mouchel bosses have been in intense talks for weeks to strike the debt-for-equity swap which will see RBS, Lloyds Banking Group and Barclays waive £87m of debt in return for a major stake in the company.

The deal still leaves Mouchel saddled with £60m of outstanding debt which the firm described as “appropriate for a company of Mouchel’s size and prospects.”

Mouchel was due to default on its debts by the end of this month and lenders warned the firm would be placed in administration without the proposed restructure.

The deal is now dependent on shareholders’ approval on August 24, but was described as the only viable and deliverable option.

Shareholders have been braced for losses during a period which has seen the firm’s share price plummet.

Early last year Mouchel’s board turned down takeover offers from rivals Costain and Interserve for around 153p a share, saying the £170m offers significantly undervalued the company.

Six months later the then chairman and chief executive resigned as the extent of Mouchel’s financial woes became apparent.

Grant Rumbles (pictured), Mouchel’s replacement chief executive, said: “We are pleased to announce today the terms of our financial restructuring, creating a stable platform for the long term future of Mouchel.

“Given the circumstances, we believe the restructuring represents the best possible outcome for all of our stakeholders, safeguarding our existing customer and supplier contracts and preserving job security for Mouchel’s employees.

“Throughout this challenging period, we have continued to work with our customers, suppliers, employees and other key stakeholders to implement our strategic actions and we are encouraged by the progress made.

“With the continued support of our lenders, we now look to take Mouchel forward from here as a privately-owned company.”

Latest Issue

latest magazine issue

Inside

  • Smart motorways' BCR problem
  • New lighting decision support tool

 

 

View the latest issue


Highways jobs

Senior Project Manager

Up to £50,823 per annum
The role of this post is to oversee the project management, development and implementation of the County Council’s Major Transport Projects.. Leicestershire
Recruiter: Leicestershire County Council

Programme and Change Delivery Manager (Spatial Planning and Urban Design)

£43,833 - £53,115 Depending on skills and experience
Are you a change delivery manager with expertise in England’s local government spatial planning and urban design sector? Wandsworth, London (Greater)
Recruiter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Bridges Manager – Highways and Transportation

£49,320 to £57,376
You will be responsible for... Northallerton, North Yorkshire
Recruiter: North Yorkshire County Council

Head of Major Projects and Infrastructure – Highways and Transportation

£59,526 to £67,815 plus 10% recruitment payment
This role will be pivotal to the effective delivery of our Highways and Transportation service, therefore requires an... Northallerton, North Yorkshire
Recruiter: North Yorkshire County Council

Principal Travel Plan Officer

£34,728 to £38,890 per annum
We have a fantastic opening within our team for a Principal Travel Plan Officer. Taunton, Somerset
Recruiter: Somerset County Council

Director of Economy & Environment

£96,414 to £106,650 per annum
You will play a leading role in driving forward the county’s ambitious growth programme. Gloucester, Gloucestershire
Recruiter: Gloucestershire County Council

Director of Transport & Highways

£96,414 to £106,650 per annum
You will play a leading role in driving forward Gloucestershire’s ambitious, multi-million pound transport and highways programme. Gloucester, Gloucestershire
Recruiter: Gloucestershire County Council

Board and Partnership Board Chair

Up to £60,000 per annum
This is unique opportunity to lead the Northern agenda and play a pivotal role in creating new opportunities for 15 million people in the North. Manchester/Leeds (Flexible)
Recruiter: Transport for the North

Waste Strategy Manager

£47,672 per annum
We are looking to recruit a waste strategy specialist to add the necessary technical expertise to our team. North Tyneside, Tyne and Wear
Recruiter: North Tyneside Metropolitan Borough Council

Highways Officers

£26,999 to £29,636
Are you someone who is looking to progress their career with one of the most highly regarded highway services in the country? Selby, North Yorkshire
Recruiter: North Yorkshire County Council

Highways Operative

£19,312 to £21,748
We are looking for Highways Operatives to work as part of our operations teams here at Kirklees Council. Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Senior Environmental Health Officer

£44,370 - £50,964 per annum
As a Senior Officer in the Food Safety & Infectious Disease team, you will be one of the operational leads on... Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

Permit Officer

£24,982 - £27,041
In October 2016 Cambridgeshire County Council launched it Permit Scheme for Road Works and Street Works. Huntingdon, Cambridgeshire
Recruiter: Cambridgeshire County Council

Traffic Systems Engineer

Competitive Salary
This is a full time role, with a minimum of 37 hours a week for a 6 month interim period, with the potential of the role going permanent. York, North Yorkshire
Recruiter: City of York Council

Transport Compliance Officer

£27,741 - £30,451 per annum
An exciting opportunity has arisen for two Transport Compliance Officers to join our Transport Services team at... Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Client Team Leader - Highway Maintenance

£40,876 - £42,821 per annum
Are you looking for a challenge that widens your experience, adds something unique to your CV and helps to make Warwickshire the best it can be?  Warwickshire
Recruiter: Warwickshire County Council

Head of Waste & Parking

£62,235–£68,615 pa
Are you passionate about waste recycling and the bigger picture of sustainability and tackling the climate emergency? Horsham, West Sussex
Recruiter: Horsham District Council

Project Engineer x2

Grade H £35,745 - £43,857
We’re looking for experienced civil engineers to join our well-regarded design and implementation team. Havant, Hampshire
Recruiter: Havant Borough Council

Environment Locality Officer

£27,741 - £29,577 per annum
The officer will play a key role in collaborative working with other internal & external stakeholders specifically... Telford, Shropshire
Recruiter: Telford & Wrekin Council

Senior Principal Structures Engineer

£39,880 - £42,821 per annum
We are looking for a dynamic structurally competent and relevantly experienced officer, to deliver the structural requirements and disciplines on... Bristol
Recruiter: Bristol City Council

Highways Presents

Highways on Fridays

Register now!

Latest Video