International support services and construction group, Interserve, which has been under Government watch following a number of profit warnings has announced that discussions with its lenders and other financial stakeholders have continued to progress well, with agreement in principle on major commercial terms now reached, subject to credit approval from all providers before the new facilities are finalised.
In addition, the lenders have agreed to extend the covenant test deferral date and the maturities of the financing facilities agreed in December 2017 to 30 April 2018 to enable the successful execution of all documentation required for the refinancing.
The additional facilities comprise cash facilities of £196.6 million plus bonding facilities of up to £95 million.
Debbie White, Interserve’s Chief Executive, said: “Today’s announcement is a significant milestone for Interserve and a major step in securing a firm financial platform to underpin the Group’s future. We are encouraged by the support from our lenders in respect of these new facilities, which will allow the new management team to execute our business plan, focused on delivering a great service for customers, driving growth and restoring value.”
Interserve employs 80,000 people worldwide, of which 25,000 are based in the UK.