Public sector giant facing vote leading to potential administration
Government hauler Interserve is facing a vote today (March 15) which could lead to its administration.
The company has been trying to make shareholders back a rescue deal which would see 95 per cent of the firm passed on to lenders.
In February, Interserve reached a deal with creditors in order to prevent its collapse. However, shareholders could reject its plan to swap debt for equity in this vote, therefore Interserve’s lenders could apply for a pre-pack administration.
This means that the firm would avoid a huge collapse - unlike Carillion in 2018. However, existing shareholders would cease.
In this sort of administration, lenders take 100 per cent of the business.
Interserve is one of the UK’s biggest public services providers, with around 45,000 national employees.
The company sells services, which include cleaning and healthcare, and is involved in construction projects.
Both the rescue deal and the pre-pack administration are aiming to keep professional contracts and jobs within the company moving.
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