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Mon September 23 2019

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Interserve board mulls Coltrane's alternative plan

24 Feb The board of Interserve has reached agreement with its lenders, bonding providers and pension trustee on the key commercial terms of its deleveraging plan. Only shareholders remain to be persuaded.

Interserve will this week publish shareholder documents that include the notice of a general meeting at which shareholders will vote on the debt reduction plan. The documents will also set out the full terms of the deleveraging plan.

Interserve’s largest shareholder, Coltrane Asset Management, is fighting the board’s plan, which effectively hands over ownership of the company to the banks.

Coltrane, which represents 27% of the shareholders, has submitted an alternative plan to the board, which the board said it was now considering.

This would involve a £75m rights issue and leave shareholders with 10% of the business instead of just 2.5% undercurrent plans.

The outline deleveraging plan was revealed on 6th February, reducing debt from around £650m to £275m by issuing £480m of new Interserve equity – converting debt to equity – and reallocating £350m of group debt to the profitable RMD Kwikform division.

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