15 Mar 2019 14:01
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF EU REGULATION 596/2014.
FOR IMMEDIATE RELEASE
15 March 2019
INTERSERVE PLC
Parent Company Administration to implement Alternative Deleveraging Plan
Following the announcement earlier today that the resolution to approve the deleveraging plan was not approved, the board of directors (the "Board") of Interserve Plc ("Plc" or the "Company") announces that it intends to apply to the High Court in London for the Company to be placed into administration.
This is part of an alternative transaction which, when implemented, will restore the Group's balance sheet. Plc's subsidiaries will remain solvent, providing continuity of service for its customers and suppliers. It is envisaged that, immediately following the administration order being made, Plc's business and assets (i.e. the entire group) (the "Group") will be sold to a newly incorporated company which will ultimately be controlled by the Group's existing lenders.
Following completion of the sale of the Group to the new company, the intention is for an alternative deleveraging transaction to be implemented. This will achieve substantially the same commercial principles as the deleveraging plan, including the release of approximately £815 million in principal amount of secured debt owed to the Group's lenders and approximately £202 million of contingent secured liabilities owed to the Group's bonding providers, the exchange of approximately £485 million of existing debt facilities for ordinary shares in the new company and the provision of an £110 million of additional liquidity to the Group. In addition, the purchaser will assume approximately £3.42 million of the Company's intragroup payables liabilities. However, under the alternative deleveraging transaction, shareholders of Plc are not expected to receive any value for their shareholding.
Completion of this alternative deleveraging transaction is anticipated to occur shortly after the completion of the sale of the Group. The Board believes this is the best remaining option to preserve value, protect the jobs of employees and ensure the Group can carry on as normal with minimal disruption.
Trading in the Company's ordinary shares was suspended at 12.35 p.m. today.
For further information please contact:
Interserve
Jonathan Refoy +44 (0) 7880 315877
Tulchan Communications (PR Adviser)
Martin Robinson +44 (0) 207 3534200
Lisa Jarrett-Kerr