Interserve subcontractors told it’s business as usual

Aaron Morby 3 months ago
Share

Interserve is pledging business as usual after the construction group was forced through a pre-pack administration at the weekend.

Staff take to Twitter in bid to shore up confidence in Interserve

Senior staff have taken to Twitter to support chief executive Debbie White’s message that it will be business as normal for staff, subcontractors and suppliers.

On Friday evening Interserve plc was placed into administration, with its assets bought by lender-backed company Montana 1. This has been renamed Interserve Group.

The deal only saw the plc business collapse with the rest of the limited companies within the group remaining solvent.

Any firms in contract with the now defunct parent group, Interserve plc, become creditors and will need to lodge claims with administrator Ernst & Young.

Around 200 firms that provided IT, HR and property management services to Interserve plc risk not being paid for work carried out.

It still remains unclear how many subcontractors could be impacted.

According to Interserve, which is seeking to shore up confidence in the business, suppliers and subcontractors working for the main operating businesses will be unaffected.

Interserve has set up an emergency hotline for employees, customers and suppliers to answer questions about the arangements. The number is: 0333 207 4180.

Construction subcontractors can contact Interserve for more details by email.

Over the weekend it also emerged that outsourcers Mitie and Serco had made overtures to administrator EY to buy Interserve’s support services division, which turns over £1.7bn.

The lenders are understood to have put a price tag of around £300m on this part of the business.

On Twitter, Andrew Turner regional business development manager at Interserve Construction, said: “We’ve had a clear message from Interserve Construction. No change to the operating business. It is business as normal. No effect on our employees and our supply chain is being paid as normal.”

Ross Mather, managing director for Interserve Engineering Services, also confirmed it would be business as usual.

Debbie White, Chief Executive Officer, Interserve Group said: “With a stronger financial platform in place, Interserve will be able to concentrate on delivering value for our customers.

“Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector, ” she added.

Commenting on the pre-pack deal, a spokesman for EY, said: “The transaction has enabled rest of the Interserve Group to access the required additional £110m of liquidity, as well as implement the debt for equity swap and reduce the indebtedness of the group by some £480m.

“These actions avoided the significant loss to creditors that would have resulted from a collapse of the group and secured the jobs of some 68,000 employees worldwide.”

Professor Rudi Klein, CEO of trade body, SEC Group, said it was still too early to judge the fall-out from the moves.

He said: “At present the outcome of any pre-pack administration insofar as Interserve’s supply chain is concerned remains unclear.

“But, yet again, the financial models adopted by these large outsourcers pose an ever-present and potentially very damaging risk to their supply chains. Following Carillion’s collapse, it was generally assumed that there would be a radical re-appraisal of the public sector’s approach to construction/infrastructure procurement. This hasn’t happened.”

 

 

Latest news

Restructure returns Sir Robert McAlpine to profit

McAlpine delivers £7m profit in turnaround year after £3.8m in redundancy pay-outs
15 hours ago

Bridge construction uses mountain building techniques

First steel sections installed at stunning Tintagel Castle bridge
11 hours ago

27% of roof steel stripped from HS2 station design

Value engineers save £7m on Balfour Beatty/Vinci's Old Oak Common station project
20 hours ago

Scape slashes firms on next generation Venture framework

Venture Framework contractors cut from 13 to six firms
2 days ago

Galliford Try Partnerships buys northern builder

£62m turnover Strategic Team Group to be renamed Galliford Try Partnerships Yorkshire
1 day ago

FRP Advisory appointed Shaylor administrator

Administrator confirms around 200 redundancies at collapsed Midlands contractor
2 days ago

Buckingham bags relief road for HS2 village

New route will spare Northamptonshire village from site traffic
21 hours ago

Skills card scheme shuts safety test loophole

Tightening up of rules will see everyone sit a current CITB safety test
20 hours ago

Kier cutting 1,200 jobs and selling housing arm

Contractor quitting non-core operations as debt levels rise again
2 days ago

Boost your online presence – join the Enquirer Directory

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

Shaylor staff laid-off by Sunday morning email

Over 200 staff to be axed as directors confirm Shaylor is heading for administration
2 days ago

Willmott Dixon margin hits 2.8% as profit soars

Group builds cash reserve to weather further Brexit project delays
2 days ago

Multiplex brings profit back on track

Profit recovers to £18m on revenue of £1.1bn
2 days ago

Roof safety horror show lands contractor in court

Photos show roofers risking their lives after HSE had already served a stop notice
2 days ago

United Living wins £18m Poole tower blocks revamp

Project Admiral will see four housing tower blocks upgraded
2 days ago

Shaylor files notice of intent to appoint administrator

Subcontractors walk off sites as Midlands contractor seeks extra finance
4 days ago

Bidders day for £900m Heathrow rail tunnel project

Planned 6.5km rail link between the Great Western Main Line and London Heathrow Airport
5 days ago

Grenfell: 75% of unsafe blocks still to be reclad

Owners of 328 high rise blocks still need to complete remediation
5 days ago

Building products firm Alumasc issues profit warning

Problems at Levolux division cast shadow over upcoming results
5 days ago

Wooden football stadium plan rejected

Council rejects Forest Green Rovers plan for Zaha Hadid designed new ground
6 days ago

Flannery Plant Hire spends £30m on Cat machines

Huge deal signed at Plantworx exhibition
5 days ago

£1bn Stratford East Bank scheme clears final planning

Cultural and education centre in Olympic Park ready to go
6 days ago

Ringway wins £420m road maintenance deal

Highways England East Region contract could last 15 years
6 days ago

Hammerson unveils new Birmingham city quarter plan

1,300 homes and 1.4m sq ft of workspace planned for Martineau Galleries site
6 days ago

Planning row sees roads blocked on Persimmon site

Council blocks construction traffic to housing site
6 days ago

Tolent lands £84.5m Durham Milburngate contract

Contractor bags one of its biggest ever deals with main construction work set to start shortly
7 days ago

Government commits to net zero carbon by 2050

Industry must quickly rise to the challenge of improving the existing building stock
7 days ago

Extra week to put forward your favourite construction firms

Construction Enquirer Awards deadline extended: Enter online now
1 week ago

Wates ramps up FM offering with new business

Wates FM will target public sector work and wider spectrum of private clients
7 days ago

Worker killed by remote-controlled crane

Lift goes fatally wrong on National Grid site
7 days ago

Contractor services