(Alliance News) - Management Resource Solutions PLC on Monday said it is in advanced talks with to refinance debt incurred by its principle subsidiaries.
The maintenance, fabrication and earthworks company, which is in discussions with investment firm Remagen Capital Partners Pty Ltd, said it expects the refinancing transaction to occur in the "next few days".
Once the refinancing is successful, the company will agree to a Deed of Company Arrangement with voluntary administrators under Australian law.
If this does occur, control of the company's five Australian subsidiaries which are in administration will be returned to Management Resource following a vote at a second creditors meeting. This typically takes place three to four weeks after the first, which was held on Monday, the company said.
Management Resource said: "At the first meeting of creditors of the subsidiaries, held today, the voluntary administrators provided a general update and confirmed that the group is trading and it is business as usual. They confirmed that they have called for recapitalisation proposals."
On September 6, the company said administrators have been appointed for Holdings (MRS) Pty Ltd, MRS Services Group Pty Ltd, Bachmann Plant Hire Pty Ltd, MRS Property No 1 Pty Ltd and Management Resource Solutions Pty Ltd "pursuant to section 436C of the Corporations Act 2001", an Australian law.
Two days prior to this, Management Resource said: "The company has received an e-mail, after business hours in Australia and from an Australian firm providing insolvency solutions, stating that certain of their officers have been appointed as voluntary administrators of five of the company's operating subsidiaries pursuant to Section 436C of the Corporations Act 2001."
Shares in the company were untraded in London on Monday afternoon, last quoted at 2.57 pence.