Interserve has confirmed that it is in final discussions with shareholder Coltrane to establish a basis on which the company would support its restructuring proposal
The last-ditch attempt by Interserve comes after Sky News revealed that Coltrane had told the company’s administrator that it may seek to buy its assets.
According to Sky News, Coltrane Asset Management has hired Enyo Law, a specialist disputes firm, to represent it ahead of a final vote on Friday (15 March) that will determine whether Interserve can secure a solvent restructuring.
The Sunday Times also reported at the weekend (9 March) that Coltrane was preparing legal action against the outsourcer’s directors.
In response to Sky News’ claims, Interserve has said it is in discussions with Coltrane and its lenders to establish the basis on which Coltrane would support the company’s restructuring proposal.
The statement also read: “Although the board is seeking to improve the position of all shareholders, there is no certainty that it will be able to do so in the very limited time available.
“The only proposal which is currently capable of being implemented is the recommended Deleveraging Plan through which, inter alia, shareholders will retain 5% of the equity of the restructured Interserve with the ability to acquire further equity through the open offer.”
Coltrane holds a stake of around 27% and is allegedly seeking to oust most of Interserve’s board. Sky News also revealed it intends to vote against the restructuring proposal without a substantial improvement to the existing plan.