Home Business News Interserve faces crunch vote on rescue plan

Interserve faces crunch vote on rescue plan

by LLB Reporter
15th Mar 19 9:16 am

UK outsourcing giant Interserve faces crunch talks with shareholders over their future on Friday, the outsourcing giant are looking to avert administration.

Interserve holds crucial government contracts for schools, hospitals and prisons, investors are to decide whether to approve a restructuring proposal tabled by the company.

The group are considering a debt-for-equity swap with its lenders as they are trying to cut nearly £650m of debt.

Investors such as BNP Paribas, HSBC and RBS with Emerald Asset Management and Davidson Kempner Capital could seize control over the remaining equity, under a plan that will see their holdings slashed to 5%, if approved.

The group employs 65,000 people worldwide, 45,000 are based in the UK, Interserve said they are “in a critical financial situation.”

The proposed rescue plan could see the firm reduce debts from nearly £650m to £275m.

Interserve has lined up EY to undertake a pre-pack administration if they are voted down.

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