Outsourcing giant plans rescue deal

Outsourcing giant Interserve has said it is looking at a rescue deal as it struggles with the weight of £500m of debt.

The firm, which has construction operations in Castelford, said it having “constructive dicussions”, but that any plan still had to be finalised.

The firm employs tens of thousands of people in schools, hospitals, civil engineering and prisons.

Debbie White, CEO of Interserve, said: “We are making good progress on our deleveraging plan which we expect to announce early in 2019. Our lenders are supportive of the deleveraging plan which will underpin the long term future of Interserve. Our refinancing in April of this year contemplated the development of a deleveraging plan in consultation with our stakeholders and the liquidity injected at that point also gave us the funding to execute our business plan. Our discussions with our lenders are a positive step in the process that was agreed as part of the April refinancing. The Cabinet Office has also expressed full support for the work we are doing to implement our long term recovery plan.

“The fundamentals of our business remain strong. The deleveraging plan will give Interserve a strong long term capital structure and provide a solid foundation on which to build the future success of the Group.”