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.
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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.
