Interserve is likely to go into administration on Friday.
A plan to swap the majority of that debt for new shares requires the support of more than 50% of the shareholders and the company's biggest shareholder - US hedge fund Coltrane which owns 27% - is currently dead set against the plan. The board's plan would see current shareholders awarded 5% of the company - with the rest going to the creditors.An-overly indebted private provider of public services going to the wall after years of suicide bidding to win government contracts at the same time as paying out big salaries and dividends.If the company collapses on Friday - this is what will happen.
The real impact will be on the debate over the appropriateness of using big private sector contractors to carry out essential public service work.The government has been monitoring the Interserve situation closely and while it has felt unable to award a company close to collapse much new work , the Cabinet Office and the Department for Business Energy and Industrial Strategy are comfortable services won't be interrupted.
eltonhigh
Agree with a lot of people here that outsourcing is broken, indiscriminately used and detrimental but fix the issue. Driving interserve to collapse won't help employees, subcontractors, public, departments and anyone Interserve does business with.
The answer in song 'Let it go.....let it go....' Interserve business model is toxic and will continue to bleed to death even if Shareholders accept this deal....collapse will just be delayed by 2 years.
More debt for the taxpayer .Why do they get government contracts because of MPs on their boards
Outsourcing doesn’t work, has never worked. Keep prison roles for prison staff.
They was brought in on Blairs watch and was always useless, 3 times 3 diff workers to look at my broken toilet, not 1 bit of work done, told em to naff off i can't take more time unpaid off work. Labour Gov Labour Boro
Simple solution, the government pays off the debt and restricts salaries, bonuses and dividends until the loan has been paid off, that way everyone is a winner.
Should close all these fake debt ridden businesses down and allow the people doing the actual work to own them . All money made now just goes to bank debt and auditors. Give it back to the workers. govtcontracts publiccompanys
I wonder if that WPP monies has been paid to their pension providers or it’s been pocketed to use to carry the business.
I said this wld happen 2 months ago. Don’t forget Capita.
Privatisation. Its called Privatisation.
About time too, taking people for a ride with excessive charging and it's come home with a bang.
Are you watching Capita?
If you can't make a profit from charging £59 to change a light bulb you have a problem........
Who knew? Outsourcing on the cheap doesn't work! everyoneexceptthetories
¿Americans from Perú, Brasil, México, Chile, Nicaragua, Jamaica, Canada, Panamá, USA...?. America has 35 countries, not only USA, cretins.
More proof that public services should not be out sourced to companies whose only motive is profits for shareholders.
So will the Govt get stuck with the Pensions again? Have the Govt not been monitoring this? Is this another Chris Grayling fiasco? It won't matter anyway we will soon all be bankrupt thanks to this theresa_may Brexit shambles
Why isn't the BBC reporting this?
govt funneling tax payer money to its wealthy friends, again. Keep voting for these thieves why don't you. corptheft
Could have told you this 12 months ago
Another one of Blair's bent PFI deals?
Once again sub contractors and employees will pay the price as a result of Government ineptitude and austerity. Not to mention greedy executive bonus culture.
Privatisation turning out to be a WIN (for market speculators) 🙃 Capitalism
Yet another outsourcing disaster. When will this government learn?
CAPITA & SERCO NEXT
Looks like they're not paying them either.
First Carillon, possibly interserve next my MSc dissertation is practically writhing itself!
Why do you not state that Interserve are a the BBC’s service provider for facilities?
Failing Grayling at it again 🤦
And another one bit the dust......
DeanCorbridge Start the music: “Another one bites the dust”.
Yeah... That's our money.