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I agree - what a mess. The way it's falling we could see something well below 10p.
I only hope that Friday concludes the situation. Either it's voted through or pre-pack. Employees jobs will be safe.
Any further messing around by the two parties could put that at risk.
Share price backtracking fast. I suppose with the details of the plan still in dispute just 48 hours before the vote and the 2 articles around EFW have not helped matters.
What a total mess!!!!
yep cc think you right
Just as likely that an article will appear somewhere this afternoon mooting the possibility of a better deal....
Share price really struggling now.
Wonder how many stops are at 10p?
From the Previous RNS
Interserve confirms that it has been in discussions with Coltrane and its lenders which have sought to establish the basis on which Coltrane would support the company's restructuring proposal.
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.
I expect a follow-up RNS today, stating the final position - otherwise there is still ambiguity ahead of the vote on Friday.
I hope all the management rot in hell the directors for bad management, when I worked for them the area management were absolute rubbish, at the time i was branded a disgruntled ex worker, now you see I was right in what I was saying.
;-)
There is now no time Feileb. You are voting on the 5% deal. That's the decision you have to make.
If the lenders were serious about the 7.5% they would have offered it by now as all the votes for those using nominee accounts have to be in mostly by close of business tonight. The cut-off have passed for some already.
If it's true IRV run out of money this week then the Directors have to put it in receivership (or-prepack) if the vote doesn't go through. Otherwise they would be knowingly let it trading insolvent which is an offence.
Which deal are existing shareholders voting on?
Interserve currently in talks with Coltrane to agree a better deal that will be voted through...upto 20% for existing shareholders.
7.5% deal muted but possibly rejected by Coltrane.
5% deal on table.
Do shareholders hang on and wait or vote for a deal that is possibly worse than they would get if they waited?
True
"They run out of cash on Friday, the pre pack administration would inject the cash to continue trading, but for how long?"
Why should anyone on this board care how long the company can continue after a pre-pack?
All existing shareholders would be wiped out the instant this happens.
And the FCA investigation, still outstanding..... They run out of cash on Friday, the pre pack administration would inject the cash to continue trading, but for how long? Oh and what about the contracts that rely on the company being listed? Hmmm, i still think liquidation at some point is a possibility.
Looks like buyers dwindling and sellers finding no-one to sell into.
Building magazine running a couple of articles that Council close to terminating contract at Derby and London Premier Inn delayed by months.
At the end of the day it won't matter what deal is done if they company can't manage these projects professionally
I believe you are right Meta in that cash will not settle. There was a guy on the CLLN thread who got caught by this and spent endless time persuing his broker who just kept coming back with the settlement period.
Having said that I suspect most of the larger retail brokers did settle even though they were not obliged to as there wasn't an uproar on this or any other BB. I would guess they had both buys and sells and just took the difference on the chin (or perhaps they have some long standing deal with their prime broker)
Regarding the buying/sale of shares over the next few days, would it be correct to say that today, maybe tomorrow could latest to bet on whether administration will or won't happen? That is to say, if it becomes apparent that the deal won't go through on Friday and people begin to sell, it is not necessarily the case that they will get their money, such is the grace period for the cash to be delivered from the brokerage firm, if the company was to go into administration on Friday afternoon over the weekend?
Interserve not best served by copying ‘no deal’ Brexit tactics
Compromise is inexpensive way for government contractor to secure restructuring deal
“It’s my deal or no deal!” It did not work for the government when seeking a Brexit agreement. And it is not working for a government contractor seeking to exit its debts. In fact, Interserve — which earns two-thirds of its £2.9bn revenue from Whitehall outsourcing contracts — seems to be facing defeat in a vote on restructuring plans?.?.?.?not unlike the British prime minister.
Interserve had previously hoped that Theresa May-style tactics would win support for a deal to escape £700m of debt. It offered shareholders the stark choice of backing a debt-for equity swap in which they would end up with just 5 per cent of the company, or letting the business collapse into a “pre-pack” administration in which they get nothing. And — not unlike those wealthy landowners who spray-paint “No Deal, No Problem” on their EU-subsidised farm buildings — Interserve’s bankers claimed that going into administration would be easy: “Business will carry on as usual.”
Ministers appeared supportive of either outcome if it meant avoiding a Carillion-style collapse, and enabling 45,000 workers to continue their vital roles in prisons, hospitals and schools. Loyal shareholders agreed to vote for the plan, even at a 95 per cent cost to themselves. Only US investor, Coltrane, objected to the deal-or-no-deal ultimatum — arguing equity holders deserved more than 1/20th of a restructured company. But Interserve supporters said Coltrane’s votes counted for only 27 per cent?.?.?.?not unlike Brexiters who dismiss any opposition to “the will of the people”.
So why did Tuesday bring reports of possible concessions by Interserve? If no deal and administration really is no problem, why would shareholders say they had been offered 7.5 per cent of the equity to support a deal, and were holding out for 20 per cent? Three reasons suggest themselves.
First, Interserve may be having trouble mobilising its voters?.?.?.?not unlike a government whip trying to corral Brexitshire MPs. With lots of individual investors on its share register, seeing off opposition from Coltrane and allies is no certainty.
Second, the risk of defaulting to a no-deal outcome is actually a problem, and Interserve’s lenders know this?.?.?. A pre-pack administration may avoid collapse, but could still trigger the voiding and reallocation of government contracts — potentially leaving the lenders with loads of equity but fewer assets.
Third, Coltrane’s lawyers have warned Interserve’s directors, and its prospective administrator EY, about their duty to shareholders?.?.?.?with a subtlety not unlike that of a Brexit protester with a megaphone. None will wanto provoke legal challenges. Compromising on a few percentage points of equity will cost Interserve’s lenders little, with the company now valued at £21m. It is an inexpensive way to secure a deal?.?.?.?
2.84bn new shares given to lenders @ 15.3p = £435.2M debt swapped for equity
Existing shares = 150M+16M=166M
166M÷3006M=5.5% remain with existing shareholders
Open offer at 15.3p (0% discount on lenders price)
Value of share price following deal would be:
166M @ 15.3p = 25.4M plus 2.48bn @ 15.3p =435.2M = £460.6M (post dfe company value)
£460.6M ÷ 3006M shares = 15.3p
If the 5% deal gets put forward then the post dfe SP will be 15.3p
If company value rises over time to 1bn cap then the SP could reach 33p
That is why most shareholders imo may struggle to vote for the 5% deal
2bn new shares given to lenders @ 21.7p = £435.2 debt for equity
Existing shares = 150M+16M=166M
166M÷2166M=7.6% remain with existing shareholders
Open offer at 15.3p (30% discount on lenders price)
Value of share price following deal would be:
166M @ 15.3p = 25.4M plus 2bn @ 21.7p =435.2M = £460.6M (post dfe company value)
£460.6M ÷ 2166M shares = 21.2p
If the 7.5% deal gets put forward then the post dfe SP will be 21.2p
If company value rises over time to 1bn cap then the SP could reach 46p
That is why most shareholders imo would vote for the 7.5% deal
Met - can’t agree with your comments on Coltrane. I think they are unjustified. Lest not forget they don’t have all the necessary information and due diligence needs to take place once they have it. They have done well in my opinion. Obviously invested based on all the good news eminating from Twyford Towers from BoD. Messages that got changed again and again about position with EfW. Enyo may have a position with all of this, who knows.....find out on 15th.
Bigb
I agree to a certain extent and totally agree now that Pre-pack admin will not happen.
I don't see the lenders moving much further and hence them now having to buy up shares to carry the deal.
I would like 10% for existing shareholders, but would take 7.5% now.
I have also bought in as I see any purchase below 15p will provide a profit.(the extent of profit will depend on the final deal)
I don’t think pre pack admin will be the route taken. I am of the opinion this was an empty threat from the BOD and Lenders. Let’s be honest the BOD are merely glove puppets here to the Lenders, doing as they are told for I am sure a reward in the future. Coltrane not laying down and ‘taking it’ form the Lenders has certainly caused a stir, and good for them. Shareholders in the original deal, drawn up by the Lenders, were to be left with a measly 2.5%. As soon as Coltrane’s objections were noted the Lenders doubled their offer for shareholders to be left with 5%, still a measly percentage and ridiculous offer. Coltrane are doing the right thing and standing up to these crooks. In doing so, and in the last 24 hours we are lead to believe the Lenders would increase the offer further for shareholders to be left with 7.5%. So, in summary, in just a matter of weeks the Lenders has trebled their offer from 2.5% to 7.5%, still an insult to existing shareholders and they know it, and so does Coltrane. I am of the opinion a deal is still to be had here. I don’t believe for one moment the Lenders will want a pre pack administration and will continue negotiating with Coltrane, who, and good for them are standing their ground. I have been a buyer today as my opinion is a better deal for existing shareholders will be agreed by Friday, or their will be an extended period for negotiations to continue. There is too much at stake here for both parties, Coltrane (hence their objections) and the Lenders (has increasing their original offer for a second time and keen to be in talks with Coltrane).
"Coltrane appear to be thrashing around and have completely lost the plot if you ask me."
Do you think they ever 'had the plot'
Maybe they let an apprentice loose with a fund? Maybe the same person has now been promoted to the legal team, who knows?
Still time for them to knock up another 5 page powerpoint presentation though.
CC
I think it may shortly come out that the Lenders did move to 7.5% but Coltrane said no.
If this is the case, I agree with your comments re. Coltrane.
I imagine the Lenders & BoD have now given up with Coltrane and are working on ensuring a Pre-pack deal will not happen. The Lenders are obtaining the required % of shares to get their deal through.
I bet the Lenders & BoD will not now offer ordinary shareholders the 7.5% deal and we are unfortunately back to 5% ....as Coltrane would not play ball and the Lenders have been forced to purchase shares to ensure the deal passes.
I perceive that Pre pack admin, may now be irrelevant
work appears to be going on in the background to ensure a deal will be voted through....
https://www.constructionnews.co.uk/companies/contractors/interserve/interserve-investor-could-buy-firm-out-of-insolvency/10040937.article
Coltrane appear to be thrashing around and have completely lost the plot if you ask me. I'm happy for someone to play devils advocate with me but I don't think they've got a scooby. The only way Coltrane could do this is if it refinanced nearly £1b of debt at around 5% and who is going to lend them that sort of money to buy IRV.
Coltrane seem to be full of bluster and words but does anyone seriously think they are going to spend hundreds of millions on something where they currently have a shareholding worth £5m?