Investment firm collapses into administration despite ‘turnaround plan’
A diversified investment firm has been placed into administration with directors at odds at how the company will move forward.
MBH Corporation, headquartered in Birmingham, acquires and develops businesses in fragmented industries. It’s given SMEs the opportunity to be listed on the Frankfurt and Dusseldorf Stock Exchanges as part of the group and up until December 1, MBH was also listed on AQUIS. Investors have had access to businesses in the $1m-$10m EBITDA range through the buy and build approach.
Nineteen companies belong to the group which spans across the world, businesses include Boulder Sausage based in Louisville; Learning Wings is a Singapore education firm; Robinsons Caravans group is located in Chesterfield and Cobul Constructions is based in Australia.
The decision to enter administration was made on Friday (February 23) with Kris Wigfield of Begbies Traynor and Douglas Pinteau of WSM Marks Bloom appointed as joint administrators today. An Extraordinary General Meeting will be held on March 11 to discuss the future of the business and to vote for the removal of the board of directors.
Not all directors are in support of the move, with statements released to say there is a turnaround plan and line of funding available and entering administration “is not in the best interests of creditors, shareholders or bondholders”.
Another announcement was made this afternoon to confirm the appointment of administrators and make clear that two previous statements “correcting” Friday’s filing were made without the authorisation of the firm’s directors and are “invalid”, adding to an already tense situation.
Plans to ensure the “future success” of MBH include the divestment of poor performing assets, acquiring new profitable groups and restructuring the board of directors. It follows the resignation of Mohid Miah as both director and secretary on Friday morning.
An Extraordinary General Meeting will be held on March 11 to discuss the future of the business.
David Hunter, of Loughborough-based Take Me Group (formerly ADT Taxis), which is part of MBH, has been appointed to the board as executive director.
