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UK construction firm NMCN slips into administration on funding woes

By Reuters

NMCN Plc is unable to continue trading as a going concern without new funding and plans to call in administrators from Grant Thornton, the British construction group said on Monday.

The company had expected 24 million pounds ($32.63 million) in new funding from a company led by former Stobart executives Andrew Tinkler and Ben Whawell and others but said it had failed to prepare its accounts on time for the funds to come through.

NMCN said it had received indicative offers from certain parties for the acquisition, on a going concern basis, of some of its trading operations and units and that it was in talks with others for similar deals.

“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,” it said in a statement.

($1 = 0.7356 pounds)