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Public infrastructure group Mouchel stated 8,000 jobs at the company have been saved as it announced it is entering administration.
The trouble hit company, which helps build and maintain UK motorways, had its shares suspended on Friday, after its shareholders rejected a proposed restructuring.
The shareholders turned down a proposal to swap the companies £87m of debt for stock but it intends to go ahead and implement the plan anway, allowing the 8,000 positions to be preserved.
Mouchel’s chief executive quit last year after the company stated that a statistical error and mounting risks to contracts would slash about 60% off profits and its interim chairman resigned four days after being appointed.
The Woking-based form has a long history, and is credited with introducing reinforced concrete to the UK in the 1890’s.As a result of the shareholders decision the company had no choice but to enter administration and has now been sold to new company MRBL.
According to adminsitrator KPMG the sale will enable all of Mouchel’s subsidiaries to continue operating as normal.
“The completion of this restructuring means that the long-term furture of this business is secure,” stated current Chief Executive, Grant Rumbles.
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