Interserve rejects second shareholder rescue plan

Aaron Morby 6 years ago
Share

Interserve’s board has rejected the second rescue proposal from its major shareholder warning there is insufficient time to consider the terms in full.

Interserve chairman Glyn Barker says board and lenders plan is the only one to provide a certain future and secure jobs, pensions and public services
Interserve chairman Glyn Barker says board and lenders plan is the only one to provide a certain future and secure jobs, pensions and public services

In increasingly frosty exchanges, Interserve reported that shareholder US hedge fund, Coltrane Asset Management, had refused to let the plan be put before the contractor’s main lenders.

It said this meant it could not gauge the appetite of lenders to take significantly larger write offs set out, or provide ongoing support, in the short time frame that remained available.

The board added that in light of the Interserves’s short-term liquidity requirements and given that the board’s deleveraging plan remained the only fully funded proposal backed by lenders, bonding providers and pension trustee, it was  unable to consent to this request without risking the future of Interserve together with its employees, pensioners, customers and suppliers.

Glyn Barker, chairman of Interserve, said: “This is a critical time for Interserve.

“The proposed deleveraging plan, recommended by the board, is the result of a long period of intensive negotiation to align stakeholders behind a plan to strengthen the balance sheet and secure a strong future for the business.

“It is the only plan today that provides a certain future for Interserve, preserving some value for shareholders while securing jobs, pensions, and continuity of services.”

He added: “In the absence of any other plan that is capable of implementation, further uncertainty continues to risk an outcome in which there is no return to shareholders, including Coltrane, and considerable disruption to the business.

” Accordingly, the board continues to unanimously recommend that shareholders support the Deleveraging Plan and vote in favour on 15 March.”

Interserve said it would provide more detailed feedback to Coltrane on its proposal today and confirmed that the board remained open to considering any proposal which provided liquidity and a deleveraging solution that was capable of implementation in the time frame available.

Latest news

First contractor call for £80bn Government mega-framework

Seven-year deal will cover construction work across all departments
6 hours ago

Welding crisis road bridges revealed

Bridge projects in Midlands, Gateshead and Cornwall impacted
16 hours ago

£1bn Bishopsgate Goodsyard phase one go-ahead

London Mayor approves 550,000 sq ft office scheme above Shoreditch station
15 hours ago

Costain poised for major HS2 tunnel fit out deal

Latest major deal on project due imminently
15 hours ago

New builds overtake refurbs in London office market

Drop in new construction starts but developers remain bullish
15 hours ago

Willmott Dixon wins £23m net zero Surrey SEND school

Hopescourt School job takes low carbon work pipeline to £1.4bn
16 hours ago

£1.6m fine after mast climber crush tragedy

Court hears how worker died while unloading work platform
15 hours ago

Severfield welding crisis hits five National Highways bridges

Full penetration butt welds under scrutiny as weight restrictions imposed
2 days ago

HS2 awards £3bn of track contracts

Ferrovial BAM and Colas Rail among 'rail systems' winners
2 days ago

Chinese diggers face 83.5% duty after JCB dumping complaint

Fair trade body finds UK kit prices were undercut by 23%
2 days ago

Rayner puts freeze on 43-storey London office tower

Government to consider impact on nearby 18th century City synagogue
2 days ago

Subcontractors raise concerns at Salford site

Bridgewater Wharf scheme hit by series of company failures
2 days ago

Wates wins Middlesbrough Gresham regen scheme

Firm will build 230 rental flats, hotel and 450 student beds
2 days ago

Severfield finds weld problems on nine HS2 bridges

Steelwork specialist slumps to a loss after £20m hit to fix installed structures
3 days ago

Scottish Water launches £9bn bid race

Delivery Vehicle 4 is company's largest ever procurement programme
3 days ago

Multiplex signs off £400m Westminster barracks resi job

Super prime 179 flats to be built at former home of Royal Horse Artillery
3 days ago

Road worker dies after crash on A30

Collision involving two highways maintenance vehicles and a lorry in Cornwall
3 days ago

Vp launches dedicated rail division

Launch comes as equipment rental specialist posts latest results
3 days ago

Kori Construction lands £21m Leicester care home

Work to start next month with local supply chain
3 days ago

Kier in line for £70m Bishop’s Stortford town centre job

Developer Cityheart recommits to regeneration of Old River Lane site
3 days ago

Kier and Bam star in two Welsh frameworks worth £1.4bn

Welsh hospitals and South West Wales building frameworks awarded
4 days ago

Developer GPE targets 40% of reused building materials

Subcontractors will be asked for suggestions on how to cut use of virgin materials
4 days ago

95 secure spots on major consultants framework

Host of firms win places on Procure Partnerships deal
4 days ago

Arup restructures board to create new CEO role

Group chair Jerome Frost takes new role at consultant
4 days ago

Winners revealed for £5.4bn electricity grid upgrade

SP Energy Networks unveils 19 winners - full list
6 days ago

Balfour and Flannery hit training milestone

1,000th student trained at Operator Skills Hub
4 days ago

Fast-track skills hubs to train 5,000 extra apprentices

Plan for network of 32 skills hubs to train construction apprentices in half the time
6 days ago

Malaysian property giant to buy 50% stake in JRL

IJM Land to buy into diversified £800m turnover south east contractor
7 days ago

Luxury house builder files administration notice

£31m turnover Octagon Developments Ltd lodges court notice
7 days ago

Morgan Sindall takes on £22m stalled ISG Cardiff school job

Workplan is being drawn up ahead of restart on Penarth school
7 days ago

Contractor services