Troubled consultant hires investment bank to advise on tackling debt

Troubled consultant Mouchel has signed up Goldman Sachs to advise the firm on how to tackle its estimated £90m debt.

Sources told the Sunday Times the investment bank was considering a number of options, including a break-up and sale of the business and a debt-for-equity swap to hand ownership of the company to its lenders.

Shares at Mouchel have fallen almost 90% over the past year, after failed takeover bids by Costain and Interserve and an £8.5m profit warning last October damaged investor confidence.

Mouchel sold two parts of its business last year – its rail business to project manager Sinclair Knight Merz and its pipeline design business to engineer Mott MacDonald.