Interserve to file for administration as rescue rejected

Aaron Morby 5 months ago
Share

Interserve shareholders have rejected the proposed rescue plan leaving the board to file for administration today.

Chief Executive Debbie White fails to win over shareholders

Around 60% of the votes cast rejected the proposed debt for equity swap, which would have given lenders 95% of the business and left shareholders with just 5%.

Interserve’s board of directors will now follow their plan B, designed to substantially achieve the same balance sheet and liquidity outcomes for the group as the deleveraging plan.

This will see Interserve file for administration with the business and assets then being pre-packed to a newly-formed company wholly owned by lenders.

Interserve Plc’s subsidiaries will remain solvent in this process, providing continuity of service for customers and suppliers, said the group.

It is hoped the pre-pack deal, which could be agreed today, would protect most of the 45,000-strong UK workforce and pensions.

But questions still remain about what happens to cash owed to Interserve’s unsecured subcontractors and suppliers.

In a statement following the vote, the board said: “The alternative transaction will be implemented very quickly and via a carefully-managed process and the administration and sale is expected to be completed this evening, ensuring that the business will continue to operate as normal for customers and suppliers. 

“It will provide the group with a strong financial position, allowing it to grow and develop the business, to deliver on its long-term strategy and protect the group’s employees (including the beneficiaries of the Group’s pension schemes).”

Latest news

Graham to start Liverpool flyovers demolition next month

Complex dismantling of Churchill Way flyovers to cost nearly £7m
4 hours ago

Jacobs to buy John Wood nuclear arm for £250m

More than 2,000 staff to transfer to Jacobs in major UK nuclear take-over
11 hours ago

First JCB electric mini diggers start arriving on site

Lynch and Willow Hire take first zero emission excavators
3 hours ago

Private equity firm snaps up roofing supplier Marley

Belgian materials giant Etex sells Staffordshire-based roofing specialist employing 600 staff
7 hours ago

Creditors blast Britain’s oldest building company

Firms owed cash demand answers after Durtnell strikes debt repayment deal with some suppliers
12 hours ago

Persimmon calls in independent site quality enforcers

New construction quality checkers will vet trade contractor delivery independent from site management teams
10 hours ago

Crossrail enters its “most challenging phase”

Contractor productivity a "main area of programme risk and uncertainty."
11 hours ago

Shaylor collapse hits trade contractors for £19m

Directors Stephen and Ritchie Shaylor listed among major creditors
1 day ago

City planners tighten rules to avoid tower downdraughts

Skyscrapers will now be designed with pedestrian and cyclist safety in mind
11 hours ago

Failed piling firm Aspin auctions off plant fleet

More than 600 pieces of kit expected to raise over £2m
12 hours ago

Javid unveils £600m boost for five projects

Fresh infrastructure funding to unlock 50,000 homes in London, Bedfordshire and Essex
2 days ago

Flying debris from Didcot demolition knocks out power

Material blown off cooling towers during demolition hits overhead power line
1 day ago

£100m Chester Racecourse revamp approved

First phase of work to begin this autumn
1 day ago

Fusion 21 hunt for £250m building upkeep firms

New building repair and improvement framework for regions to launch in November
1 day ago

Lendlease unveils new construction boss

Company veteran Simon Gorski takes over from Neil Martin
4 days ago

Kier to start work on £50m new home for Durham council

Contractor promises major boost to local supply chain
4 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Willmott Dixon to complete Pochin Stoke site

Replacement found for collapsed contractor on £37.5m scheme
4 days ago

VolkerWessels UK on track to top £1bn turnover

Group margin hits 3% as UK business enjoys record order book of £1.4bn
4 days ago

Britain’s oldest building company strikes deal with creditors

R Durtnell agrees debt repayment plan with suppliers owed more than £8m
4 days ago

Worker jailed for tax dodging on major London sites

Self-employed Bournemouth builder sentenced to 30 months for evading £110,000 in tax
5 days ago

Bid race starts for £40m M1-A6 link road

Central Bedfordshire Council says project could start in March 2020
4 days ago

Castle Building Services bags £6m M&E package

Early appointment by Bowmer & Kirkland alllows plenty of pre-site start design time
4 days ago

Bright ideas from Balfour Beatty staff save £4m

"My Contribution" programme sees staff suggest 2,600 ways to improve efficiency
5 days ago

£120m plan to replace Liverpool flyover with tunnel

Plan lodged to demolish flyover and replace it with a dual-lane tunnel
5 days ago

B&K checks in with Manchester “Jenga” hotel

Work to start next month on 275-bed Piccadilly Station hotel
6 days ago

Radisson backs £5bn Kent theme park with hotel plan

Hotel giant takes stake in project as backers look to confirm construction start date
6 days ago

Super safe scaffold screen could slash site costs

System in use at Twickenham station site boosts safety and saves money
5 days ago

McMullen lands cladding package at King’s Cross

Specialist to deliver striking facade for main contractor BAM
5 days ago

Balfour results can help “restore confidence” in construction

Boss Leo Quinn says latest numbers show contractors can deliver
6 days ago

Contractor services