10th Dec 2018 06:52
LONDON (Alliance News) - Interserve PLC on Sunday said it continues to trade in line with its expectations for 2018 and intends to publish its finalised deleveraging plan in early 2019.
The outsourcing firm said it noted the recent press reports regarding plans to reduce debt on its balance sheet.
On Saturday, The Financial Times said Interserve's shareholders could lose everything under the terms of a rescue finance plan being discussed between Interserve and creditors.
Under the terms of the proposed refinancing plan, banks and other debt holders would take a significant loss as part of a debt-for-equity swap, while public shareholders would be virtually wiped out, the newspaper said.
On Sunday, Interserve confirmed its lenders are engaged in constructive discussions regarding the agreement and implementation of a deleveraging plan, which it said would deliver a strong balance sheet.
The company confirmed that the plan is likely to involve the conversion of a substantial proportion of its external borrowings into new equity. And, if implemented in this form, the deleveraging plan could result in "material dilution" for current Interserve shareholders.
However, Interserve highlighted that it continues to trade well and in line with its expectations for the year to the end of December.
"We are making good progress on our deleveraging plan which we expect to announce early in 2019. Our lenders are supportive of the deleveraging plan which will underpin the long-term future of Interserve," said Chief Executive Debbie White.
"The deleveraging plan will give Interserve a strong long-term capital structure and provide a solid foundation on which to build the future success of the group," added White.
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