21 Oct 2019 10:31
21 October 2019
Management Resource Solutions plc
Update
The board of Management Resource Solutions plc ("MRS" or the "Company") provides the following update.
The Administrators have issued an interim report to the creditors of the five MRS subsidiaries listed in the announcement of 6 September 2019. The report contains background and financial information on the five subsidiaries, confirms that the businesses are continuing to trade and sets out the expected further steps in the administration process.
The Administrators also report that they have advertised the businesses for sale as a result of which they have received seven indicative non-binding offers. They have set a formal deadline for final and best offers of 28 October 2019 and would intend to conclude any sale and contract documentation by 8 November 2019. However, this is subject to change depending on the terms of the sale offer and any Deed of Company Arrangement ("DOCA") proposals received. In this regard, as has already been announced, the MRS board and its Australian advisers continue to negotiate a DOCA proposal with the Administrators and expect it to be finalised in the coming days. The board of MRS will also be seeking to raise additional funds of circa AUD$5m as part of the DOCA proposal. These additional funds will be used for working capital required post 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.
The second meeting of creditors is expected to be held on or before 15 November 2019. At that meeting the 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. In their next report, the Administrators will set out their opinion on which option is in the best interests of creditors. The board remains firmly of the view 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 will be provided as soon as appropriate.
ENDS
For further information:
Management Resource Solutions plc Paul Brenton, CEO Tim Jones, Finance Director
| via FTI Consulting Tel: +44 (0) 20 3727 1000 |
Arden Partners plc (NOMAD & Broker) Paul Shackleton
| Tel: +44 (0) 20 7614 5900 |
FTI Consulting (Financial PR) Alex Beagley James Styles Sam Macpherson | Tel: +44 (0) 20 3727 1000 |
About MRS
Management Resource Solutions plc (MRS), through its subsidiaries Bachmann Plant Hire and MRS Services Group, offers plant hire, equipment repair, refurbishment and fabrication, mine rehabilitation, earthmoving, road construction and other support services to a wide base of private and public sector clients in Australia. MRS caters predominately for the mining, civil engineering, construction and infrastructure industries.
Further information on the Company can be found at http://www.mrsplc.info