Interserve enters pre-pack administration
Interserve has entered a pre-pack administration overseen by accountancy firm EY.
The group has already been sold to a newly incorporated company controlled by the group’s lenders.
The deal precedes a deleveraging transaction that will involve swapping £485m of existing debt for equity, as well as the provision of £110m of additional liquidity. It follows a vote by shareholders earlier today to reject a rescue plan. Its shares listed on the London Stock Exchange were suspended this afternoon and are expected to be cancelled on Monday 18 March.
Interserve stressed that it is business as usual for employees, customers, suppliers, and other stakeholders.
The newly incorporated company to which the group has been sold, Montana 1 Limited, will be renamed Interserve Group Limited.
The company said: “The transfer of ownership to Interserve Group enables a deleveraging of the group to provide the business with a strengthened balance sheet and a more competitive financial structure to support its future growth. This deleveraging transaction is expected to complete shortly after the completion of the sale of the group. At completion, Interserve Group will be owned by the group's lenders.”
Debbie White, chief executive officer, Interserve Group said: "With a stronger financial platform in place, Interserve will be able to concentrate on delivering value for our customers. The group's transformation programme will continue, focused on improving our value propositions for customers, standardising our operational delivery, making Interserve simpler and more efficient through our Fit for Growth initiatives, and embedding a culture of ownership and openness throughout the group. Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector."