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29 August 2012 | Anna Reynolds
A lawyer has advised buyers to check contracts they hold with infrastructure and services group Mouchel, following the company’s restructure.
Mouchel Group went into administration last week and the business was sold to MRBL, a newly incorporated holding company owned by the company’s lenders, including RBS, Lloyds Banking Group, Barclays and the group’s management.
The firm said it would continue with business-as-usual with clients on its current deals. “There will be no impact whatsoever. All contracts will be carried over to MRBL and nothing will be affected. We are still on the look-out for new contracts,” Mouchel group finance director Rod Harris told SM.
However, procurement law specialist Richard Tinham, partner at law firm Winckworth Sherwood, advised buyers with worries to check the detail in their contracts.
“If buyers have any commercial concerns they should establish what the exact legal form was that Mouchel took when undergoing its restructure,” he said. “There is a caveat whereby a contract can include a change of control provision. Buyers should check their contracts to see if this is applicable to them and if so, they could be entitled to terminate.”
He added: “Assuming that Mouchel’s contracts with the public sector were entered into by Mouchel Group PLC’s trading subsidiaries and that ownership of those subsidiaries was transferred to MRBL Limited pursuant to the restructure, from a procurement perspective there shouldn’t be a problem.”