0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

‘Business As Usual’ for Interserve after Pre-pack Administration Deal

Written by: Keith Tully

Published: 19th March 2019

Business As Usual for InterserveThe support services and construction sector outsourcing giant Interserve is telling staff and subcontractors that its main businesses will be operating as normal despite a pre-pack administration deal having seen it swap owners in recent days.

A debt-for-equity deal intended to rescue the group that owned those businesses before it entered insolvency was rejected by shareholders on March 15th and Interserve subsequently appointed administrators from EY.

Assets owned by Interserve plc were immediately transferred to a new entity, Interserve Group, which has been established by creditors, with the old parent group having now become defunct.

According to EY, the pre-pack administration deal has secured jobs within Interserve’s 68,000-strong workforce while also “ensuring there was no disruption to the vital public services that Interserve provides to the UK government”.

“The transaction has enabled the rest of the Interserve Group to access the required additional £110m of liquidity, as well as implement the debt for equity swap and reduce the indebtedness of the group by some £480m,” an EY spokesperson added.

Debbie White, the Interserve Group’s chief executive, has said that the recently done deal gives her operation a “stronger financial platform” that will enable it to deliver value to customers going forward.

“Interserve is fundamentally a strong business and with a competitive financial platform in place we see significant opportunities ahead as a best-in-class partner to the public and private sector,” she said in a statement.

In recent weeks and months there have been concerns that Interserve would suffer a similar fate as that which befell Carillion, the facilities management and construction sector outsourcing giant that collapsed into insolvency and liquidation in early 2018.

Despite continuing to operate, having entered administration, there are lingering fears that Interserve’s situation will eventually lead to a significant number of job losses and leave large numbers of contractors out of pocket.

The collapse and liquidation of Carillion last year led to a notable increase in the number of corporate insolvency cases with the UK’s construction sector as a significant number of its suppliers were left unpaid.

Interserve Group subsidiaries have operations covering everything from large-scale civil engineering projects to healthcare staffing and from property development initiatives to the provision of IT hygiene services.

Annual revenues across the group are worth in excess of £2 billion and it has around 45,000 employees in the UK.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners