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Interserve rescue plan to be set out in full this week

Interserve has announced it will publish shareholder documents this week which will include the notice of a general meeting of Interserve at which shareholder approval of the Deleveraging Plan will be sought. The documents will also set out the full terms of the Deleveraging Plan.

On 6 February the Board announced that the key commercial terms of its Deleveraging Plan had been agreed with its lenders, bonding providers and Pension Trustee to reduce net debt to c.£275 million through the issue of c.£480 million in equity.

The plan, which would effectively see Interserve hand ownership of the company over to the banks was met with disapproval from Coltrane Master Fund, which represents 27 per cent of the firm’s shareholders, who called for eight of the company’s directors to be removed.

Overnight the Interserve Board received an outline proposal from Coltrane Asset Management, which it has said it is considering. According to The Guardian, Coltrane’s proposal would give only 65 per cent of the company to creditors, in exchange for £436 million of debt, providing shareholders with 10 per cent of the share capital as opposed to 2.5 per cent, and the opportunity to participate in a 25 per cent rights issue worth £75 million.

The Board has confirmed it “remains committed to achieving a consensual deleveraging plan”.

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