BOURNEMOUTH council leader Peter Charon has met with the new Mouchel boss to seek assurances the debt-ridden company can continue to provide council services.

Cllr Charon said he was “very reasssured” following a half-hour telephone conversation with new chief executive Grant Rumbles – but stopped short of saying he was 100 per cent confident the company would not go bust.

Mouchel took over the running of four council departments last December but is currently in financial turmoil and trying to cut an £87m debt burden to satisfy the banks.

Bournemouth council is delaying transferring more services to Mouchel pending a risk assessment and financial management company KPMG are carrying out a detailed investigation on behalf of Mouchel’s bankers.

Cllr Charon said there were three eventual outcomes – that business continues as normal, that they get taken over or that they suddenly go bust.

“I’m very reassured that (going bust) is not going to happen,” he said.

“I think it would be unlikely, it’s more likely there could be a buy out and we’ve got a contingency plan in place for that.

“They clearly do have a significant debt to their bankers, that’s common knowledge, and the share price has collapsed but has that stopped them from delivering the service day to day?

“No it has not.”

He said Mouchel would be publishing their fully audited accounts on November 30 and said Mr Rumbles had told him they would “put them in a different place to where we are now.”