Interserve PLC Response to proposal Coltrane Asset Management L.P (9146R)
March 05 2019 - 7:56AM
UK Regulatory
TIDMIRV
RNS Number : 9146R
Interserve PLC
05 March 2019
RESPONSE TO PROPOSAL FROM COLTRANE ASSET MANAGEMENT L.P.
The Board of Interserve (the "Board") makes the following
statement after review, with its advisors, of the proposal from
Coltrane Asset Management L.P. that was received on 4(th) March
2019 (the "Coltrane Proposal").
The Coltrane Proposal requires the consent of the lenders,
bonding providers and Pension Trustee to be capable of
implementation. The Board has asked Coltrane for its consent to
share the Coltrane Proposal with these parties and their advisors,
but this request has been refused despite the fact that the key
terms of their proposal have been made public by Coltrane. The
ability to obtain lender support for a materially different deal
requiring lenders to take significantly larger write offs, or
provide ongoing support, in the short time frame available is
therefore unknown.
The Coltrane Proposal requires that the Board immediately halt
the implementation of the Deleveraging Plan that was launched on 27
February 2019 and that is subject to shareholder approval on 15
March 2019. In light of the Company's short-term liquidity
requirements and given that Interserve's Deleveraging Plan is
currently the only fully funded proposal which has the agreement of
lenders, bonding providers and Pension Trustee, the Board is unable
to consent to this request without risking the future of Interserve
together with its employees, pensioners, customers and
suppliers.
The Board also notes that the Coltrane Proposal is non-binding
and unfunded and remains subject to due diligence. There is
therefore no certainty that Coltrane's proposal could be
successfully implemented.
The Board will be providing more detailed feedback to Coltrane
on its proposal today and confirms that the Board remains open to
considering any proposal which provides liquidity and a
deleveraging solution that is capable of implementation in the time
frame available.
However, the Board continues to recommend that shareholders vote
in favour of the Deleveraging Plan, which is currently the only
plan that is capable of implementation in order to provide
sufficient liquidity, cash and bonding facilities to allow the
Group to service short term obligations and secure a stable
platform for the business.
Glyn Barker, Chairman of Interserve, said:
"This is a critical time for Interserve. The proposed
Deleveraging Plan, recommended by the Board, is the result of a
long period of intensive negotiation to align stakeholders behind a
plan to strengthen the balance sheet and secure a strong future for
the business. It is the only plan today that provides a certain
future for Interserve, preserving some value for shareholders while
securing jobs, pensions, and continuity of services. In the absence
of any other plan that is capable of implementation, further
uncertainty continues to risk an outcome in which there is no
return to shareholders, including Coltrane, and considerable
disruption to the business.
"The Board considers the Deleveraging Plan to be in the best
interests of Interserve and all its stakeholders, including
shareholders, as a whole. Accordingly, the Board continues to
unanimously recommend that shareholders support the Deleveraging
Plan and vote in favour on 15 March."
ENDS
This announcement contains forward-looking statements in respect
of the Group and its Deleveraging Plan. By their nature, these
statements involve uncertainty, known and unknown risks and other
factors and therefore assurance cannot be given that any particular
expectation will be met. In particular, while Interserve continues
to work towards the implementation of the Deleveraging Plan in the
first quarter of 2019, there can be no assurance that the
Deleveraging Plan will be implemented unless and until agreements
have been reached with several parties and until all conditions are
satisfied.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION RELATING TO
INTERSERVE PLC.
LEI: 549300MVYY4EZCRFHZ09
For further information please contact:
Jonathan Refoy +44 (0) 7880 315877
Interserve plc
Martin Robinson +44 (0) 207 3534200
Lisa Jarrett-Kerr
Tulchan Communications
About Interserve
Interserve is one of the world's foremost support services and
construction companies. Everything we do is shaped by our core
values. We are a leader in innovative and sustainable outcomes for
our clients and a great place to work for our people. We offer
advice, design, construction, equipment, facilities management and
frontline public services. We are headquartered in the UK and
FTSE-listed. We have consolidated revenues of GBP2.9bn and a
workforce of circa 68,000 people worldwide.
www.interserve.com
For news follow @interservenews
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END
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