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The civil engineering company behind a major road works project around Liverpool Lime Street station should be immersed in administration.
Nmcn’s board of directors has decided that the company is no longer able to continue operating.
Helen Dale, Nigel Morrison and Jonathan Roden of Grant Thornton are expected to be appointed as directors.
nmcn Sustainable Solutions has also been placed under administration. The other companies in the Group are not currently affected.
The news comes after an eventful year for nmcn.
In June, Svella reached a deal to inject Â£ 24million into the company while renegotiating its facilities with Lloyds Bank with up to an additional Â£ 5million offered to be raised through an open offer to existing shareholders. This transaction was conditional on the company being able to publish its 2020 annual accounts.
However, when drawing up the accounts, the auditors revealed other underlying contractual issues with expected losses reaching Â£ 43million.
A statement from nmcn said: âIt has now become evident that the company will not be able to approve the audited financial statements in a timely manner to allow the proposed transaction to complete on time. This in turn led to significant liquidity problems for the group and in particular for the company, which is unfortunately now considered to be unable to continue operating as a business. “
The company said it has received offers to acquire some of the company’s business operations and / or subsidiaries on a going concern basis, and “discussions are underway with other parties which could lead to indicative offers on a similar basis “.
The press release adds: “Following discussions with its advisers, it is expected that this process will be conducted outside the administration, in order to preserve the continuity of operations and employment, and therefore, the consideration to be received by the company. is unlikely to result in any equity value. shareholders.
âThe board of directors of nmcn would like to thank all its shareholders, customers and suppliers for their support over the years and in particular Svella and those who had intended to participate in the capital subscription which was part of the transaction proposed, which had to be canceled. . “
NMCN is the prime contractor behind the controversial multi-million pound redevelopment of Lime Street and the St George area.
The program is part of the wider Liverpool city center connectivity program.
A spokesperson for Grant Thornton said: âI can confirm that we are working with group directors and parties who have expressed an interest in the company with the aim of maximizing the position of its employees and creditors. We will provide a further update on these discussions when we can. “