This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Employees reassured ahead of Interserve administration

15 March 2019

As its board of directors applied to the High Court for Interserve to be placed into administration, the company urged its employees to continue working as normal.

Using its official Twitter account in a message to employees, the company said: "We want to reassure you that it's business as usual.

"Turn up for work as normal, you'll be paid as usual," the company stated and included a hotline number for employees, customers and suppliers.

The company has also issued a statement claiming that placing it into administration will allow it to be sold to a new company controlled by its existing lenders.

This will allow it to "restore the group's balance sheet" and ensure its subsidiaries remain solvent and provide continuity for customers and suppliers, it said.

It is expected the move will release £815m of secured debt and "approximately £202m of contingent secured liabilities owed to the group's bonding providers".

Approximately £485m of existing debt will additionally be exchanged for shares in the new company, along with the provision of £110m of additional liquidity.

While the new company owner will "assume approximately £3.42m of the company's intragroup payables liabilities", the new arrangement is not expected to see Interserve shareholders retain any value.

The statement concluded that the board believes the solution "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".

Further details of the application and new ownership are expected to be announced later today.

Print this page | E-mail this page


View more articles
Article image

Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the r...
Article image

Celebrations begin for World FM Day 2019

Today sees the launch of this year's World FM Day events to celebrate the achievements of the industry and help to raise its profile around the globe....
Article image

Taking cleaning carbon neutral

Lara Coutinho, ABM UK’s newly appointed Environment and Sustainability Manager reflects on the path to going carbon neutral....
Article image

BigChange Five in One System Boosts DFP Facilities Management Services

DFP Services, the facilities and building maintenance company, has transformed its business with the latest cloud and mobile technology....
Article image

The rise of the specialist service provider

There is a big shake up going on across the facilities management (FM) market as clients recognise they need more engineering support to help them keep the...
Article image

Data at the heart of FM revolution

Technology and digitalisation are set to transform the FM market, just as they have for many other sectors, in a world where data is becoming the most valu...