nmcn has fallen into administration after the board reveals the contractor is no longer able to continue trading as a going concern
The directors of nmcn and its subsidiary, nmcn Sustainable Solutions Limited, have filed a court notice of intention to appoint Grant Thornton UK LLP as administrators.
The remaining companies in the group are currently unaffected.
In June 2021, nmcn entered into conditional agreements to recapitalise the company by way of a £24m fundraising with Svella plc and other investors.
‘Further underlying contractual issues’
A statement said: “The board, its advisers and Svella have worked tirelessly in the intervening period. However, as previously notified, completing the preparation of the group’s accounts has revealed further underlying contractual issues with expected losses rising to £43m.
“It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the proposed transaction to complete within the required timeframe.
“This in turn has led to significant liquidity issues for the group and particularly the company, which unfortunately is now considered to no longer be able to continue trading as a going concern.”
It added: “Indicative offers have been received from certain parties for the acquisition of certain of the trading operations and/or subsidiaries of the company on a going concern basis, and discussions are ongoing with further parties which may lead to indicative offers on a similar basis.
“Following discussions with its advisers, it is expected that this process will be conducted out of administration, to safeguard the continuity of operations and employment, and consequently the consideration receivable by the Company is unlikely to result in any value for equity shareholders.
“The board of nmcn wishes to thank all of its shareholders, customers and suppliers for their support over the years and particularly Svella and those who had intended to participate in the equity subscription that formed part of the proposed transaction, which has had to be cancelled.”
