LONDON (Alliance News) - Interserve PLC confirmed Monday that it has been in discussions with Coltrane Asset Management - which holds a 27% interest in the company - to establish ways in which Coltrane "would support" Interserve's restructuring proposal.
Interserve said it is "seeking to improve" the position of all shareholders but there is no certainty it will be able to do so in the "very limited" time available.
Interserve said: "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."
Sky News reported Monday afternoon, however, Interserve, and a group of investment funds, were weighing up the decision to offer Interserve shareholders 7.5% of the company's shares in its restructuring plan.
https://news.sky.com/story/interserve-lenders-in-talks-about-last-ditch-deal-sweetener-11662097
At the end of February, Interserve launched a GBP435.2 million fully underwritten share placing and open offer under its deleveraging plan.
This is pending shareholders approval at a general meeting on Friday.
The plan is a consensual restructuring of Interserve, which is "urgently" required to provide sufficient liquidity, cash and bonding facilities to allow the company to service short-term obligations and secure a stable platform, it said at the time.
Coltrane, however, replied with its own plan, which Interserve rejected.
Interserve refused consent to Coltrane's request, saying the plan would risk the future of the company together with its employees, pensioners, customers and suppliers.
Interserve also asked Coltrane for its consent to share Coltrane's proposal, but this request was refused. Interserve, however, noted that the Coltrane proposal is non-binding and unfunded, and remains subject to due diligence. There is no certainty, Intereserve said, that Coltrane's proposal would have been successfully implemented in the given time frame.
Shares in Interserve closed down 3.1% Monday at 14.15 pence each.
