Mouchel Group Plc (MCHL) is in talks with Royal Bank of Scotland Group Plc (RBS) and other lenders to reduce its debt of 180 million pounds ($283 million), the Sunday Telegraph reported, without saying where it got the information.
Mouchel is considering a debt-for-equity swap with the banks, including Barclays Plc (BARC) and Lloyds Banking Group Plc (LLOY), the newspaper said. The company hasn’t ruled out a so-called prepackaged administration process or raising funds from a new investor in a “highly dilutive” deal, the report said.
Mouchel Chief Executive Officer Grant Rumbles has pledged to reveal a restructured balance sheet by July 31 and said there will be limited value for current shareholders, the Sunday Telegraph said.
To contact the reporter on this story: Erik Larson in London at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at email@example.com