Outsourcing giant Interserve has agreed with its lenders a debt-for-equity swap to slash almost, £650m of debt to place the company on a secure financial footing.
Interserve said on Wednesday, companies such as HSBC, RBS and BNP-Paribas with Emerald Asset Management and Davidson Kemper Capital will seize control.
Existing shareholders will be wiped out under the terms of the deal, the firm’s debt will be reduced to £275m.
Debbie White, Interserve chief executive said, “The board believes that this agreement will secure a strong future for Interserve. This proposal has been achieved following a long period of intensive negotiation and has the support of our financial stakeholders and government.
“Its successful implementation is critical to the Interserve group’s future and all of its stakeholders.
“The deleveraging plan will, alongside our ‘fit for growth’ transformation programme, place us in a strong position to deliver our strategy, be competitive in the marketplace and provide a secure future for the Interserve group’s employees, customers and suppliers.”