29 August 2012

On 25 August Mouchel announced the completion of its financial restructuring that was announced by Mouchel Group plc on Wednesday 1 August, placing the group on a strong financial footing.

This follows a period during which Mouchel's plc Board looked at all of the available options to address the company's financial position.  The Board determined that a Debt for Equity Swap was the best available means of securing the long-term future of Mouchel, preserving the jobs of its more than 8,000 staff and continuing to meet the expectations of its key stakeholders.

On 1 August, the Board announced a restructuring of the company whereby the lenders of Mouchel - RBS, Lloyds Banking Group and Barclays - will invest £87m in Mouchel, leaving the company with £60m of debt; an amount appropriate for a company of Mouchel's size and prospects.

On 24 August Mouchel shareholders were asked to support the restructuring.  To proceed with the restructure, at least 75 per cent of the shares voted needed to be in favour.  While the majority of the votes - some 70 per cent - supported the restructuring it did not meet the minimum required level of votes. 

As a result, Mouchel Group plc, the ultimate parent company (the top legal entity that does not trade) went into a voluntary administration process which it had pre-agreed with its three lending banks in order to deliver the financial restructuring; the same structure that was announced on 1 August. 

On Saturday 25 August it was sold to MRBL, a newly incorporated company owned by the lenders of Mouchel Group plc and the Group's management.  The company has now delisted and will now operate as a privately held entity.  All of Mouchel's trading businesses continue to conduct business as usual. 

Grant Rumbles, chief executive of Mouchel, said: "The completion of this restructuring means that the long-term future of this business is secure and the jobs of more than 8,000 people have been preserved. Mouchel now has the right capital structure to take the company forward. With a stable and supportive ownership structure and a balance sheet that is fit for purpose, Mouchel is in a strong position to support our existing clients and also to start winning large contracts again.

"This brings the financial restructuring to a close and gives Mouchel the stability and certainty required to continue delivering excellent services to its clients and their local residents."

For further information please contact:

Mouchel
Grant Rumbles, Chief Executive
Rod Harris, Group Finance Director
01483 731 731

Brunswick Group
Aideen Lee / Azhar Khan
020 7404 5959

Shareholders
For questions and queries relating to your previous shareholding in Mouchel Group plc please contact the company's registrars, Equiniti, on:
0871 384 2277 (or, if calling from outside the United Kingdom, +44 121 415 0189).

Calls to the 0871 384 2277 number cost 8p per minute from a BT landline, other telephone providers' charges may vary. This helpline is available from 8.30 a.m. to 5.30 p.m. Monday to Friday (except UK public holidays).
distributed by