Wednesday, 1 August 2012
Mouchel in debt for equity swap
As we pointed out in our previous blog on Mouchel it looks as if the debt or equity swap was the best option. So Mouchel have allowed the lenders to take control of the company to stop it defaulting on its debts. This will mean the lenders, Royal Bank of Scotland, Lloyds Banking Group and Barclays, releasing £87m of Mouchel's existing debt for a majority stake in the company.
Mouchel will be left with £60m of outstanding debt and they will be de-listed from the London Stock Exchange. The shares have fallen from a high of £1.47 to under 2p. However, the company is proposing a special dividend of 1p a share, contingent on the completion of the restructuring.