Mouchel's restructuring deal leaves shareholders with nothing - Telegraph.co.uk

The transfer of ownership is expected to be completed by noon on Saturday. Mr Shearer said the administration process should be viewed "purely as a restructuring mechanism."

Mouchel reviewed its options after the company's debt reached unsustainable levels as debt-fuelled, pre-crisis acquisitions proved costly during the downturn and the company suffered at the hands of public sector spending cuts.

The company, which first introduced concrete to Britain in 1897, was carrying £170m of debt, with gross liabilities of £220m after pension costs were included.

Earlier yesterday, shareholders had expressed their dismay at original proposals for restructuring, which would have seen the same transfer of the company to the banks and management.

Speaking at a company extraordinary general meeting yesterday, one shareholder described the offer of 1p per share was "a slap in the face". Shareholders ultimately failed to back the resolutions in sufficient numbers to vote them through, leading to the administration process which has left them with nothing.

Last night chief executive Grant Rumbles, who will remain at the helm of the company, said the ultimate outcome marked an "important day" for Mouchel.

"The financial restructuring is critical for us. I'm very proud and very happy. It allows us to go forward now." Mr Rumbles said management had already implemented a plan to return Mouchel back to profitability.

Speaking earlier at the EGM, Colin Coulson, a former executive chairman of the company and shareholder in the company, echoed the widely-held view in the room that shareholders would have liked to have been given the option of holding on to shares.

"It seems you have cut the shareholders off at the legs. Shareholders have virtually no further interest in the company," he said.

Mr Shearer responded at the time: "This is the only deal that is on the table and deliverable. We have tried everything we can. There are two options: this one, or administration. We negotiated ahrd to get you something," he said.

Shareholders were asked to vote on eight separate resolutions at the EGM, including the 1p a share special dividend and delisting, and rejected them all.

Mouchel has already incurred fee costs associated with the restructuring process of almost £18m, with the list of advisers including Goldman Sachs.

Mouchel manages traffic on Britain's motorways through roadside screens that can enforce temporary speed limits, and also has agreements with local authorities to provide a broad range of basic services.