Troubled Interserve confirms talks with lenders
Support services group Interserve has confirmed it is in talks with its lenders, following days of rumours.
In a brief statement to the City this morning 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 14 September update announcement.
"A further announcement is expected in the coming days."
The company, which employs more than 1,100 people at sites across the Black Country, revealed last month trading in July and August had been "disappointing" and the cost of getting out of its energy-from-waste management business would "significantly exceed" the £160m previously guided.
The announcement saw shares plunge, wiping out half of Interserve's stock market value, although shares have recovered after major contract wins.
At the weekend reports suggested Interserve's lenders had appointed financial advisers because of growing worries about the future of the troubled contractor.
HSBC and Royal Bank of Scotland are among a syndicate of lenders thought to have called in accountancy giant EY, which is also acting as an adviser to construction and services rival Carillion as it tries to get a grip on its own current crisis.
Interserve employs 80,000 people at home and abroad, with 1,600 across the West Midlands. That includes around 120 at specialist construction work business RMD Kwikform’s two sites in Aldridge, staff at offices in West Bromwich and Dudley and another 600 working at Russells Hall Hospital.
The company is currently completing work on a new regional headquarters building next to Birmingham Airport which will bring together around 1,200 people from sites across the West Midlands from early next year.
