RIP IRV from stockmarket15 Mar 2019 13:30
Government contractor Interserve is to go into administration after its largest shareholder, the US hedge fund Coltrane, led a rebellion against financial restructuring plans drawn up by the companyβs lenders.
The result of the vote, held at an emergency meeting of shareholders, fires the starting gun on a βpre-packβ administration of the company likely to be completed by the end of the day. Interserve has thousands of government contracts such as hospital cleaning, school meals and maintenance of military bases in the Falklands. It also operates the probation service.
While shareholders will be wiped out, with ownership falling to the lenders, the nature of a pre-pack administration means the company, which employs 45,000 people in the UK, can continue trading.