IRV Interserve

TIDMIRV

RNS Number : 0627T

Interserve PLC

15 March 2019

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 GBP815 million in principal amount of secured debt owed to the Group's lenders and approximately GBP202 million of contingent secured liabilities owed to the Group's bonding providers, the exchange of approximately GBP485 million of existing debt facilities for ordinary shares in the new company and the provision of an GBP110 million of additional liquidity to the Group. In addition, the purchaser will assume approximately GBP3.42 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

MSCSFSFLIFUSESD

(END) Dow Jones Newswires

March 15, 2019 10:01 ET (14:01 GMT)

Interserve (LSE:IRV)
Historical Stock Chart
From Dec 2024 to Jan 2025

Interserve (LSE:IRV)
Historical Stock Chart
From Jan 2024 to Jan 2025