Following the rejection of its rescue plans, Interserve has now confirmed it is to go into administration, which will wipe out its shareholders. However, it is on tract to avoid a Carillion-style collapse as the company which employs 45,000 people in the UK and has numerous government contracts, will continue trading as part of an alternative transaction which, when implemented, should restore the Group’s balance sheet. This is because, immediately following the administration order being made, the Group will be sold to a newly incorporated company which will ultimately be controlled by existing lenders.
The Group has also stated that its Plc’s subsidiaries will remain solvent, “providing continuity of service for its customers and suppliers”.
Following completion of the sale of the Group to the new company, the intention is for an alternative deleveraging transaction to be implemented.
Completion of this alternative deleveraging transaction is expected to take place shortly after the completion of the sale of the Group. The Board believes this is the best remaining option to preserve value, protect the jobs of employees and ensure the Group can carry on as normal with minimal disruption.
Trading in the Company’s ordinary shares was suspended at 12.35 p.m. today.