Interserve has announced that its parent company has applied for administration. This is part of an alternative deleveraging transaction which will restore the Group’s balance sheet and provide additional liquidity. It is envisaged that the administrators, if appointed, will immediately sell Interserve’s business and assets to a new company, to be controlled by Interserve’s lenders.
Following the sale, the intention is for an alternative transaction to be implemented involving the equitisation of approximately £485 million of existing debt and the injection of £110 million of new money into the Group.
All companies in the Group other than the parent company will remain solvent (including Interserve Healthcare), providing continuity of service for customers and suppliers.
Completion of the transaction is anticipated to occur on or before Monday 18 March.
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.
If you are an Interserve Employee, Customer or Supplier and you have a question, you can contact us on our dedicated hotline 0333 207 4180 which is open from 0700 – 1900 until Monday 18 March.