Nmcn Plc, the UK engineering and construction company which SVELLA entered into conditional funding agreements with, has today announced notice of its intention to appoint administrators.
In June this year, SVELLA entered into conditional agreements to provide funding to recapitalise nmcn and drive performance through a combination of management-focused strategic improvements and hands-on investment.
Completion of this proposed transaction was conditional upon shareholder approval and publication of a prospectus, which in turn required nmcn to finalise its annual report and audited accounts for the financial year ended 31 December 2020.
However, as a result of an extended audit scope in response to addressing historic financial reporting issues, it has now become apparent that nmcn will be unable to release 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 nmcn, which unfortunately is now considered to no longer be able to continue trading as a going concern, and it intends to appoint insolvency practitioners at Grant Thornton UK LLP as joint administrators.
Andrew Tinkler, SVELLA chairman, said: “We have been working tirelessly with the company, its auditors and advisors throughout this process to enable completion of the proposed transaction. However, the situation is out of our control and it is unfortunate that nmcn was unable to complete its 2020 audit within timings that would have allowed the transaction to proceed.
“SVELLA is now the principal secured creditor for the business and we will work alongside the administrators to consider options to seek to secure the best future for the businesses within the Group and that of its employees.”