There are rumours that Interserve, one of the UK’s largest public service providers, is seeking a rescue deal.
According to the Financial Times, a £500m debt has left the firm struggling, looking into either new investment or part sale of the business.
Refinancing options may lead to creditors taking control, as the outsourcing company look to avoid a complete collapse.
Interserve work in prisons, schools, hospitals and on our roads. The Network Rail and the NHS are among their 45,000 UK employees. Services are provided, such as health care and catering, security and waste management.
The Government support the suggested long-term recovery plans.
Last month, the companies’ share price fell to a 30-year low. Despite gaining profitable contracts in the Middle East in March, their UK work continued to see the company lose money. A rescue deal was agreed at this time.
Cancellations and delays in construction projects as well as struggling waste-to-energy projects in Derby and Glasgow, are said to have caused the troubles. The collapse of construction giant, Carillion in January 2018, worsened the companies difficulties.
An Interserve spokesperson says: ‘’The fundamentals of the business are strong, and the board is focused on ensuring Interserve has the right financial structure to support its future success.’’