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12 Nov 2019 | 14:23

Management Resource Solutions mulls capital raising to acquire Australian assets

Plant hire and mining services group Management Resource Solutions said it had lodged a proposal to acquire certain assets and liabilities of MRS Services Group, a subsidiary of the company that had been placed into administration.

The proposal would see about 190 of the Australia-based subsidiary's 240 employees keeping their jobs.

Management Resource Solutions said it would need to raise about £2m, to purchase the assets and as working capital.

'Once finalised, details of the capital raise will be put to shareholders,' it added.

Management Resource Solutions said it had lodged the proposal after the administrators accepted an offer from a third party for the sale of all the plant and equipment of MRS Services Group and another subsidiary, Bachmann Plant Hire.

'The administrators have now recommended that in the absence of a more attractive solution, the five Australian companies will be placed into liquidation which would result in the entire workforce being made redundant,' Management Resource Solutions said.

'Accordingly, the board of Management Resource Solutions has now lodged a proposal to purchase certain assets and liabilities of MRS Services Group which, if accepted, would see the majority of the MRS Services Group operations continuing, including the retention of approximately 190 of the 240 existing employees.'

Story provided by StockMarketWire.com
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