AILING outsourcing group Mouchel finally got its firesale of assets underway yesterday but the first deal will generate only £3.4m initially.
It has agreed to sell its rail business and related assets to Australia’s Sinclair Knight Merz for cash and hopes to claw back a further £2.5m having retained certain assets, such as money owed by debtors and contracts where work is underway.
The group has been rocked by cuts in government spending. Its shares closed unchanged at 15.25p yesterday and are still at around only half the value of two weeks ago. Since then Mouchel has warned it could breach its banking covenants and lost interim chairman David Sugden after he failed to win backing from main lenders Lloyds, RBS and Barclays.