{"id":7178,"date":"2019-02-06T08:05:58","date_gmt":"2019-02-06T08:05:58","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/interserve-agrees-rescue-plan-with-creditors\/"},"modified":"2019-02-06T08:05:58","modified_gmt":"2019-02-06T08:05:58","slug":"interserve-agrees-rescue-plan-with-creditors","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/interserve-agrees-rescue-plan-with-creditors\/","title":{"rendered":"Interserve agrees rescue plan with creditors"},"content":{"rendered":"\n
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\n Interserve holds the contract for cleaning Network Rail stations
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Interserve – one of the UK’s largest providers of public services – has reached a deal with creditors to prevent its collapse.<\/p>\n

The rescue plan involves cutting its debts from over \u00a3600m to \u00a3275m by issuing new shares. <\/p>\n

Chief executive Debbie White said it was “a significant step forward in our plans to strengthen the balance sheet”.<\/p>\n

Interserve sells services, including probation, cleaning and healthcare, and is involved in construction projects.<\/p>\n

The firm hopes to raise some \u00a3480m by the issuance of new shares, in a deal which will hit existing shareholders.<\/p>\n

“The board believes that this agreement will secure a strong future for Interserve,” Ms White added.<\/p>\n

Under the rescue deal, Interserve will also keep its most profitable division, its RMD Kwikform construction business.<\/p>\n

The firm had considered spinning the unit off to its lenders to raise money. <\/p>\n

This is the second rescue deal for Interserve, with the company refinancing its debt in March last year.<\/p>\n

Its troubles have been blamed on cancellations and delays in its construction contracts as well as struggling waste-to-energy projects in Derby and Glasgow. <\/p>\n

The firm’s shares have plunged over the past year, currently trading at around 13p each. In December 2017, the shares had been worth 100p each. <\/p>\n

Interserve’s difficulties follow the collapse of Carillion in January 2018, which put thousands of jobs at risk and cost taxpayers \u00a3148m<\/a>.<\/p>\n

Following that, the government launched a pilot of “living wills” for contractors, so that critical services can be taken over in the event of a crisis. Interserve is one of five suppliers taking part.<\/p>\n

In a separate statement, shareholder Coltrane Master Fund, which holds over a 5% stake in Interserve, has asked the firm to remove eight directors.<\/p>\n

It requested two other individuals be appointed as directors, but reiterated its support for Ms White as chief executive of the outsourcing provider. <\/p>\n

What does Interserve do?<\/h2>\n

From its origins in dredging and construction, the company has diversified into wide range of services, such as health care and catering, for clients in government and industry.<\/p>\n

At King George Hospital in east London, for instance, Interserve has a \u00a335m contract for cleaning, security, meals, waste management and maintenance.<\/p>\n

Its infrastructure projects include improving the M5 Junction 6 near Worcester, refurbishing the Rotherham Interchange bus station in Yorkshire, and upgrading sewers and water pipes for Northumbrian Water.<\/p>\n

But Interserve is also the largest provider of probation services in England and Wales, supervising about 40,000 “medium-low risk offenders” for the Ministry of Justice.<\/p>\n<\/p><\/div>\n


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Image copyright Creative Commons Image caption Interserve holds the contract for cleaning Network Rail stations Interserve – one of the UK’s largest providers of public services – has reached a deal with creditors to prevent its collapse. The rescue plan involves cutting its debts from over \u00a3600m to \u00a3275m by issuing new shares. Chief executive … <\/p>\n","protected":false},"author":0,"featured_media":5247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7178"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/5247"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}