A report on Sky News over the weekend said the contractor’s banks had drafted in accountant EY to help assess the firm’s trading position.

The news prompted Interserve to issue a statement this morning saying that it would be making an announcement shortly.

A spokesman said: “Interserve confirms that it is engaged in constructive and ongoing discussions with its lenders.

“Work is underway to provide greater clarity on Interserve’s current trading and Energy from Waste provision, provided in the 14 September update announcement.

“A further announcement is expected in the coming days.”

Interserve, which saw its shares halve last month when it blamed economic uncertainty and weak Government spending for a downgraded profit forecast, has seen its chief executive and finance director resign in the last year.

It also warned that costs associated with exiting its energy-from-waste business would be much higher than the previous estimate of £160m.

At the time Interserve assured the markets that it would operate within its banking covenants for the year ended 31 December 2017.

The company now has a market value of around £150m and may be a candidate for a private equity-backed takeover.