Interserve faces administration warnings

Tue, 12 Mar 2019 | ADMINISTRATION



Thought to be one of the UK’s largest providers of public services, Interserve is calling its shareholders to support the financial rescue deal, or risk the company entering administration.

Only last month, Interserve reached a conclusion with its creditors to avert bankruptcy. However, if shareholders decline the debt-for-equity exchange deal – which will be put to a vote on Friday– the business’s lenders will be pushed into applying for a pre-pack administration.

The financial rescue deal has been designed by a handful of major UK players, including hedge funds, RBS and HSBC, which will aim to reduce the company’s current £631 million debt to £275 million by issuing new shares and granting 95 per cent of the firm to lenders.

In the event of the deal being rejected, a pre-pack administration will allow Interserve to sell the company or its assets before appointing administrators from Ernest & Young to take over management to protect creditors. In this scenario, lenders will own 100 per cent of the firm.

It is anticipated that no company contracts will be interrupted, or any jobs terminated, in the case of a pre-pack administration.

Chairman of Interserve, Glynn Barker, commented on the company’s tenuous situation, saying: “People shouldn’t assume that there are months or even weeks left without additional borrowing facilities. If we lose [the vote], we run out of liquidity.”

Established in 1884 as the London and Tilbury Lighterage Company Limited, Interserve today provides a range of services across the country, in construction, healthcare and catering for government and professional industries. In addition to this, the company is also England and Wales’ largest provider of probation services to 40,000 “medium-low risk offenders” in a contract with the Ministry of Justice.

Interserve’s future will be decided after the vote on Friday, 15 March 2019.

For more news stories about business sales, click here. For all our business for sale listings, click here.


Share this article



Latest Businesses for Sale

Metal Polishing Business
Fareham, Hampshire, UK Wide

Metal Polishing Supplies, a highly desirable ‘Run from Home’ opportunity established by our client in May 2008. The highly profitable business is now being offered for sale due to genuine health reasons and we strongly advise early enquiries to avoid...

Asking Price: £265,000
Turnover: £336,519

MOT Garage
Andover, Hampshire, UK Wide

The business runs as a vehicle repair garage offering a range of services. The garage offer classes 1, 2, 4, 5 and 7 up to 3.5t light commercial MOT’s. Much trade is from garages that don’t have MOT bays themselves. The garage also offers repairs for...

Asking Price: £324,950
Turnover: £363,844

LEASEHOLD


Decorators Business
Lancashire, UK Wide

Exciting opportunity to acquire (on a business only basis) an exceptionally well run and performing, independent painting & decorating contractors with work being carried out in the North West. The business is currently owner ran with 2 employees and...

Asking Price: £149,995
Turnover: £380,510


View more businesses for sale

News Search

Latest News

 
13
 
Nov
 

Brighton energy firm appoints administrators | ADMINISTRATION

Brighton-based utilities company Toto Energy has gone into a...

 
12
 
Nov
 

MBO at Gloucestershire bricklayers | MBO/MBI

Gloucestershire building services firm Cavendish Park Brickl...

 
07
 
Nov
 

Successful MBO at Homefair Blinds | MBO/MBI

Homefair Blinds has been acquired in an MBO led by a trio of...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
14
 
Mar
 

Interserve to offload equipment services division | DIVISION SALE

UK-based support services and construction company Interserv...

 
08
 
Mar
 

Birthdays card retailer put on the market | DIVISION SALE

The struggling greetings card retailer, Birthdays, has been ...

 
13
 
Dec
 

Battersea Power Station’s owner in administration | BUSINESS SALE

Battersea Power Station’s owner was placed into admini...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources