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Thu November 15 2018

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Interserve in bank talks

16 Oct 17 Interserve is in talks with its lenders, who have reportedly been spooked by the company’s latest profits warning.

Interserve chief executive Debbie White
Interserve chief executive Debbie White

Last month Interserve revealed the cost of quitting the waste-to-energy sector was proving to be even more costly than it had originally expected. In February Interserve raised its estimate of exit costs from £70m to £160m. In September it said that that number had risen “significantly” although it was not yet able to put a new figure on it.

Sky News reported over the weekend that Interserve’s lending banks, including HSBC and Royal Bank of Scotland, had called in accountancy firm EY to advise. EY is also helping Carillion restructure after its own recent heavy losses.

Interserve responded to the adverse reported with this statement: “Interserve confirms that it is engaged in constructive and ongoing discussions with its lenders. Work is underway to provide greater clarity on Interserve's current trading and Energy from Waste provision, provided in the 14th September update announcement. A further announcement is expected in the coming days.”

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