Management Resource Solutions PLC Update (5491Q)
21 October 2019 - 8:31PM
UK Regulatory
TIDMMRS
RNS Number : 5491Q
Management Resource Solutions PLC
21 October 2019
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 via FTI Consulting
Paul Brenton, CEO Tel: +44 (0) 20
Tim Jones, Finance Director 3727 1000
Arden Partners plc (NOMAD & Broker) Tel: +44 (0) 20
Paul Shackleton 7614 5900
FTI Consulting (Financial PR) Tel: +44 (0) 20
Alex Beagley 3727 1000
James Styles
Sam Macpherson
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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