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Interserve faces £66 million payout if rescue deal blocked - Sky News

Published 14/02/2019, 14:15
© Reuters. FILE PHOTO: The Interserve logo is seen on a flag at Interserve offices in Twyford
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(Reuters) - Troubled outsourcing group Interserve (LON:IRV) would have to pay £66 million immediately to lenders if its largest shareholder Coltrane blocks the debt restructuring deal and removes some board members, Sky News reported on Thursday.

The company will also have to repay "tens of millions of pounds" if its Chief Financial Officer Mark Whiteling is removed from the board, the report said.

In a bid to avert a Carillion-style collapse, Interserve had last week revealed plans of a rescue deal that will see lenders take control of the company by swapping millions of pounds worth of debt for new shares.

According to the deal, Interserve would cut debt by more than half to about £275 million after creditors wrote off loans in return for new equity worth 97.5 percent of the share capital.

Interserve had also said that Coltrane Master Fund had called for eight of the company's directors to be removed, while it had kept its support for Chief Executive Debbie White.

© Reuters. FILE PHOTO: The Interserve logo is seen on a flag at Interserve offices in Twyford

Interserve declined to comment on the report and Coltrane was not immediately available for comment. Interserve shares were down 1.7 percent at 11.38 pence.

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