British outsourcer Interserve taken over by its creditors

  • Bizline

Mar 17, 2019-

Interserve, one of the British government’s biggest contractors, was placed in administration late on Friday and immediately taken over by its lenders only hours after shareholders rejected a rescue plan for the debt-laden company. The public services provider employs 68,000 people globally, including 45,000 in Britain, to clean schools and hospitals, run probation services and build roads and bridges but has been battling to avoid being consigned to the same fate as collapsed rival Carillion. EY was appointed as administrator with Interserve’s assets then moving immediately to a newly incorporated company to be controlled by the group’s lenders, thereby wiping out existing shareholders. It is “business as usual for employees, customers, suppliers, and other stakeholders”, Interserve said, but it did not comment on whether the management team will remain unchanged. A spokesman for the Cabinet Office, which oversees government contracts, welcomed Friday’s developments. “It brings the company the stability required for it to compete for future business and continue to deliver good value public services for the taxpayer,” the spokesman said. The takeover by the company’s creditors failed to deflect criticism, however, with fresh questions raised about the resilience of Britain’s outsourcing sector a little more than a year after Carillion fell into liquidation. (REUTERS)

Published: 17-03-2019 10:27

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