August 28, 2012 11.06 am This story is over 152 months old

Lincoln jobs secured as Mouchel saved from administration

Saved: Jobs at Mouchel in Lincoln will be saved after the company was acquired from administrators.

Hundreds of jobs at the Lincoln branch of Mouchel will be saved as the firm was acquired from its administrators.

The company, which maintains motorways, payrolls and buildings through mainly government contracts, entered administration last week, when shareholders voted against a restructure of the company.

However, MRBL Limited, owned by RBS, Lloyds Banking Group and Barclays (lenders of Mouchel) and the company’s management, acquired the businesses of Mouchel administrators KPMG.

Under the new deal, the banks will wipe £83 million of the group’s debt for 80% of the new and delisted company.

The existing management will keep 20% of the shares, and Chief Executive of Mouchel Grant Rumbles will also remain in his position.

Mouchel has offices in Lincoln, Birmingham, Derby, Shrewsbury, Warwick and West Bromwich, and employs around 8,000 people across the UK.

In a statement, Grant Rumbles 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.

“We now have the right capital structure to take Mouchel forward. For our clients and suppliers it is business as usual.

“With a stable and supportive ownership structure and a balance sheet that is fit for purpose, Mouchel will be in a strong position to rebuild the business and start winning large contracts again.

“I’m pleased to say that we now have everything in place to be a stable and successful business.”

Problems arose for the company after a number of accountancy errors in the pension department led to a gross overestimation of profits.

In the last year, Mouchel also encounterd mistakes while carrying out contracts, failed takeovers and a number of resignations in management.

In the past four years, Mouchel lost around 99.8% of its value.

Back in the 1970s, Mouchel were the first company to bring reinforce concrete to the UK, and were also behind the Royal Liver Building in Liverpool and Battersea power station’s cooling towers.

Related Reports: Lincolnshire Echo