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

Dust & Fume Extraction Specialist
Scotland, UK

Specialises in comprehensive dust and fume extraction solutions, providing tailor-made designs, installations and support services. Offers invited.

Asking Price: Offers Invited
Turnover: £534,000

LEASEHOLD


Specialist Transport Services
UK Wide

Provider of specialist transport services, predominantly working with local authorities in the UK. Offers invited.

Asking Price: Offers Invited
Turnover: £6,300,000

FREEHOLD


Major Event Recycling/Waste Management
UK Wide

Debt free. High profile events. Reactive marketing. Unique equipment/plant. Relocatable. Unrivalled sector experience. Term contracts. Offers invited.

Asking Price: Offers Invited
Turnover: £710,000

RELOCATABLE



View more businesses for sale

News Search

Latest News

 
26
 
Mar
 

Craft beer company goes under | ADMINISTRATION

With stores in London, Canterbury and Margate, craft beer me...

 
25
 
Mar
 

West Midlands transport company enters administration | ADMINISTRATION

The company behind the Ring and Ride services throughout the...

 
22
 
Mar
 

Scunthorpe nightclub up for sale | BUSINESS SALE

A former nightclub based in Scunthorpe has been put up for s...

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