- Interserve holds a number of NHS contracts
- Company is expected to go into pre-pack administration
The government has said neither NHS services nor jobs will be affected by the administration of a large outsourcing company.
Interserve, which holds a number of NHS contracts, is expected to go into pre-pack administration later today. Earlier today, the company failed to secure shareholder backing for its debt-for-equity rescue plan, which would have reduced its debt by £485m but diluted existing investors’ holdings to just 5 per cent.
In a statement, the company said: “The board of directors of the company is convening an urgent board meeting to consider its options.
“In the absence of any viable alternative, it expects to implement an alternative deleveraging transaction, which is likely to involve the company making an application for administration and, if the order is granted, the immediate sale of the company’s business and assets (ie the entire group) to a newly-incorporated company, to be owned by the existing lenders.”
According to Interserve’s website, the most recent major NHS contracts it signed were last July. It won a £35m facilities management tender from Barking, Havering and Redbridge University Hospitals Trust and a £15m construction contract with Liverpool Women’s Foundation Trust.
In 2017, it won two facilities management contracts with trusts in Dorset.
A spokesman for the Cabinet office, which monitors public sector contracting with the private sector, said: “This announcement will not affect jobs or the provision of public services delivered by Interserve. We are in close contact with the company and we are confident a positive way forward will be found.”
Government and company announcements