Ailing Mouchel saved by banks

Infrastructure firm Mouchel, which provides Oldham Council services via the Unity Partnership, was pulled back from the brink today.

A syndicate of banks agreed to wipe out a chunk of the ailing firm’s debt.

Mouchel provides consulting and business services and warned it would collapse under its £140 million debt pile at the end of this month if shareholders didn’t approve a debt–for–equity swop.

Royal Bank of Scotland, Lloyds and Barclays will release £87 million of debt in exchange for a controlling stake in the business, safeguarding 8,000 jobs and leaving Mouchel with a more sustainable £60 million–worth of debt.