Interserve agrees rescue deal terms with banks

Aaron Morby 6 years ago
Share

Interserve has agreed principles of a debt for equity rescue deal with its lenders.

Debbie White, CEO of Interserve, said: “Agreeing the key commercial terms of the deleveraging plan with our lenders, bonding providers and Pension Trustee is a significant step forward in our plans to strengthen the balance sheet.”

But in a further twist today, a key shareholder has issued a call to oust eight main board directors, while remaining in support of chief executive White.

Coltrane Master Fund, which holds over 5% in the group, has called for the general meeting with the aim of removing key directors: Glyn Barker, Mark Whiteling, Russell King, Anne Fahy, Nick Salmon, Gareth Edwards, Dougie Sutherland and Nicholas Pollard.

In a complex deal to slash debts by over half to £275m, key lenders, including RBS, HSBC and BNP Paribas, have agreed to release £75m to fund working cash and taking £480m new equity in the group

This will almost wipe out existing shareholders with the new shares accounting for 97.5% of the enlarged Interserve stock. Existing shareholders will then have the option to claw that £480m back through an open offer, likely to be discounted.

Bonding providers have also agreed to provide the additional facilities required by Interserve’s business plan.

The profitable RMD Kwikform business will remain within the Interserve group despite earlier reports that it may be sold off. As part of the deal, £350m of existing debt will be shouldered by RMD.

This will be non-recourse debt effectively ring-fencing the support services business within the Interserve Group.

The terms of the deal still needs to be backed by Interserve’s shareholders, who will be told it is critical to the survival of the group.

But Interserve said this morning that it was actively preparing alternative plans to ensure the proposed deal could be implemented even if shareholder’s reject the plan. 

White added: “The board believes that this agreement will secure a strong future for Interserve. 

“This proposal has been achieved following a long period of intensive negotiation and has the support of our financial stakeholders and Government. 

“Its successful implementation is critical to the Interserve group’s future and all of its stakeholders.

She said: “The deleveraging plan will, alongside our ‘Fit for Growth’ transformation programme, place us in a strong position to deliver our strategy, be competitive in the marketplace and provide a secure future for the Interserve Group’s employees, customers and suppliers.”

Latest news

Henry family and directors face claims topping £31m

Administrators chasing dividend payout, unpaid loans and family benefits
12 hours ago

Nixon Hire sells 200-strong welfare van fleet to Sunbelt

Sunbelt more than doubles mobile site welfare capability
11 hours ago

Vistry eyes second-half affordable homes work surge

Government rent reforms and funding pledges power-up work pipeline
12 hours ago

JV picked to progress Severn-Thames water transfer plan

AtkinsRéalis and Stantec to map pipeline or canal link
13 hours ago

Police catch on the run construction boss

Director missing for months after failing to appear in court after site death
13 hours ago

Green light for £800m Poplar estate revamp

Construction to start next year at Teviot Estate
1 day ago

Civil engineering trade body boss leaves to join Mace

CECA Chief Executive Alasdair Reisner joins consulting arm
1 day ago

House builders offer £100m to drop competition probe

CMA set to strike deal with cash going to affordable housing programmes
2 days ago

Transport Secretary axes £1.4bn road jobs in south east

Alexander pulls plug on A12 and A47 upgrades in budget crackdown
2 days ago

Fusion taps HG for first Birmingham student job

622-bed Bristol Road scheme kicks off contractor’s Midlands push
2 days ago

VolkerWessels UK parent group to sell core Dutch business

UK, German and North American operations remain with Dutch owner Reggeborgh
2 days ago

Union claims sex pests are rife in construction

Shock assault figures following Unite survey of 100 workers
2 days ago

Green light for two more City of London towers

Combined 77 more storeys of office schemes approved
2 days ago

John F Hunt starts enabling works on £200m Strand Premier Inn

Main contractor due to be appointed this summer
2 days ago

£200m deal unlocks full 1,000-home Digbeth scheme

Caddick has started early works on the Moda-led Stone Yard project
2 days ago

10 big road and rail upgrades get funding green light

£1.3bn A66 dualling, Simister Island junction upgrade and Midlands Rail Hub get funding
3 days ago

Design, build and finance plan for £1bn Cheddar 2 reservoir

South West Water starts pre-bid market engagement on 75km pipeline and reservoir
2 days ago

Illegal working blitz catches Indian builders

Home Office raids target migrants working cash-in-hand on sites
3 days ago

Major Sizewell concrete win for local supplier

Eastern Concrete Ltd wins its biggest ever contract
3 days ago

SIG chief put on gardening leave

New CEO appointed as Gavin Slark steps down immediately
3 days ago

Adjustable hard hat launched for different hair types

AtkinsRéalis initiative will also make PPE more comfortable for bald builders
3 days ago

Lynch appeal sees £800,000 abnormal load fine reduced to £10k

Judge rules original fine was was 'manifestly excessive'
4 days ago

Government calls up firms to explore PPP healthcare projects plan

New public-private partnership idea to be scoped out with contractors
4 days ago

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
6 days ago

Prosper picks 34 firms for £1bn retrofit bonanza

Equans, Fortem, Mears and Vinci among winners on four-year PAS 2035 framework
4 days ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
6 days ago

£60m raised to advance world’s largest cement CCS project

Five lime and cement plants to capture emissions for storage under Irish Sea
4 days ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
6 days ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
6 days ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
7 days ago