Property services client of Carillion and Interserve requests emergency bond issue to stave off insolvency
Mapeley, the property and facilities management services provider, has warned shareholders that it risks going bust if it cannot raise £48m of emergency capital.
According to the Times, Mapeley has said it does not have enough working capital for the next 12 months, and urges approval of an emergency bond issue.
The Mapeley Group owns and manages 2.3m m2 of commercial property in the UK and is a key employer of support services contractors such as Carillion and Interserve. Among its outsourced contracts is the Inland Revenue's property portfolio.
In a note sent to investors, Mapeley warned shareholders that it faces going bust if the convertible bond issue is not approved. It needs to pay back £60m to Deutsche Bank in April.
The note said: “If the transaction does not proceed… Mapeley Group may become insolvent or unable to continue trading.”