Interserve faces administration as bank rescue rejected

Outsourcing firm Interserve is on the verge of administration after investors rejected a rescue deal that would have seen their holdings slashed and lenders seize control.

The stricken company said trading in its shares had been immediately suspended pending the sale, through a so-called pre-pack insolvency deal, that will see its various divisions hived off – protecting the 45,000 UK workers’ jobs in the short term at least.

Interserve had been working on the contingency plan in advance of the vote to prevent the possible repeat of the messy Carillion-style demise in 2018 that left its staff and contracts – including many in the public sector – in limbo.

Over 59% of shareholders rejected the restructuring proposal that would have seen their holdings dive to just 5%.

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