Top Interserve shareholder warns on asset sales

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Top Interserve shareholder warns on asset sales
United Kingdom Latest News,United Kingdom Headlines
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Coltrane has told the outsourcer’s prospective administrator that it may seek to buy its assets, Sky News learns.

Coltrane, which holds a stake of about 27%, is seeking to oust most of Interserve's board and intends to vote against the proposed debt restructuring without a substantial improvement to the existing plan, which would see existing shareholders owning just 5%.that Interserve's lenders were discussing a sweetener to that plan, potentially by increasing the amount of equity that would be offered to shareholders to 7.5%.

Coltrane has proposed a rival restructuring package that includes a rights issue that it would underwrite. Without support from a majority of shareholders, Interserve is expected to be placed into administration immediately after the vote, with lenders expected to take over the company through a process known as a pre-pack insolvency.

However, the groundwork that has been laid for Interserve's business to continue as usual in the event of a pre-pack has allayed fears about a repetition of the disruption which occurred after Carillion's demise. The restructuring has been further complicated by Sky News' revelation last month that the outsourcer was facing a double financial bombshell in the form of a provision that would trigger an immediate £66m repayment to lenders if its refinancing is not approved by investors.

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