March 5, 2019 / 1:12 PM / 4 months ago

Interserve rejects Coltrane's rescue plan

LONDON, March 5 (Reuters) - Interserve said on Tuesday it had rejected a rescue plan put forward by its largest shareholder Coltrane Asset Management because it believes the proposal risks the future of the outsourcer as it fights for survival.

Interserve has agreed an alternative deal under which existing shareholders would retain five percent of the company as part of a debt-for-equity swap with its lenders.

“In light of the company’s short-term liquidity requirements and given that Interserve’s Deleveraging Plan is currently the only fully funded proposal which has the agreement of lenders, bonding providers and Pension Trustee, the Board is unable to consent to this request without risking the future of Interserve together with its employees, pensioners, customers and suppliers,” it said.

Reporting by Kate Holton; Editing by Alistair Smout

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