(Alliance News) - Management Resource Solutions PLC on Monday said its five subsidiaries in administration have been put up for sale and non-binding offers received, with no certainty of a return for the company.
On September 6, the maintenance, fabrication, civil and earthworks firm said administrators had been appointed to five of its Australian units. These were: 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. All five businesses are still trading.
The administrators have advertised the businesses as being for sale and "received seven indicative non-binding offers". The offer deadline is October 28 with any sales or contract documentation to completes by November 8.
These possible sales depend on the terms of the sale offer and on "any deed of company arrangement proposals received". The Management Resource Solutions board is still negotiating a DOCA proposal with the administrators, set to finalise "in the coming days".
Management Resource Solutions' board is planning to raise around AUD5 million under the DOCA proposal for working capital purposes following the voluntary administration/DOCA period.
"Whilst the board remains confident that the negotiations will reach a satisfactory conclusion leading to the company regaining control of its subsidiaries, at this stage, there can be no certainty of this outcome. In the event that the businesses were to be sold to third parties it is not possible to predict what return, if any, there would be for the company," said Management Resource Solutions.
A second creditor meeting is scheduled to take place either on or before November 15 where "creditors will consider and pass resolutions on the future of each company, specifically; whether the company executes a DOCA, or the administration should end, or the company be wound up".
The board of Management Resource Solutions maintains "that its refinancing plans, which are expected to be finalised shortly, and associated DOCA remain the best option not only for creditors but for stakeholders in general." A further update is expected "as soon as appropriate".
Shares in Management Resource Solutions were suspended at the company's request in early September.
By Anna Farley; annafarley@alliancenews.com
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