Major Notts civil engineering firm set to call in administrators
Huthwaite civil enginneering firm nmcn is set to be plunged into administration after its board decided that the company was no longer able to continue trading.
Helen Dale, Nigel Morrison and Jonathan Roden of Grant Thornton are set to be appointed as administrators. nmcn Sustainable Solutions has also been placed into administration. The remaining companies in the Group are currently unaffected.
The news comes after a turbulent year for nmcn.
In June, Svella struck a deal to pump £24m into the company while it renegotiatied its facilities with Lloyds Bank with up to a further £5m proposed to be raised through an open offer to existing shareholders. This deal was reliant on the firm being able to publish its annual accounts for 2020.
However, while putting the accounts together, auditors revealed further underlying contractual issues with expected losses rising to £43m.
A statement from nmcn said: “It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the proposed transaction to complete within the required timeframe. This in turn has led to significant liquidity issues for the group and particularly the company, which unfortunately is now considered to no longer be able to continue trading as a going concern.”
The firm said that it has received offers for the acquisition of certain of the trading operations and/or subsidiaries of the company on a going concern basis, and “discussions are ongoing with further parties which may lead to indicative offers on a similar basis”.
The statement added: “Following discussions with its advisers, it is expected that this process will be conducted out of administration, to safeguard the continuity of operations and employment, and consequently the consideration receivable by the company is unlikely to result in any value for equity shareholders.
“The board of nmcn wishes to thank all of its shareholders, customers and suppliers for their support over the years and particularly Svella and those who had intended to participate in the equity subscription that formed part of the proposed transaction, which has had to be cancelled.”
nmcn is currently building the Trent Bridge Quays residential scheme and York Place student development in Nottingham.
A spokesperson for Grant Thornton said: “I can confirm we are working with the Directors of the Group and parties who have expressed an interest in the business in an attempt to maximise the position for its employees and creditors. We will provide a further update on these discussions when we are able to.”