Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Interserve lenders look to acquire RMD Kwikform

Interserve’s lenders have called for its subsidiary RMD Kwikform to be placed in a separate holding company under their ownership.

The contractor announced it was in talks with lenders to refinance the business earlier this month.

In a statement this morning the Interserve board said its deleveraging plan means it will deliver a strong balance sheet by the end of next year.

The statement also noted that “consideration is also being given to whether it would be in stakeholders’ interests for the board to agree to lender requests for RMDK to be placed in a separate holding company owned by the lenders”.

A sale of the equipment services arm was considered two years ago but decided against. Earlier this week Construction News  reported that the idea was being looked at again.

Today the board’s statement added:

  • The deleveraging plan will deliver a strong balance sheet targeting leverage of less than 1.5x net debt / EBITDA by the end of 2019.
  • Debt retained by Interserve will have terms consistent with the debt of a well-capitalised UK corporate.
  • The deleveraging plan includes the conversion of a sufficient amount of Interserve’s senior debt into new Interserve ordinary shares in order to achieve target leverage.

Debbie White, chief executive of Interserve, said: “This progress on the deleveraging plan is excellent news for all our employees, customers and suppliers.

“It will provide us with a strong balance sheet and enable us to move forward with confidence and the ability to improve our business and deliver our long term strategy.”

Keep up with our Interserve coverage on CN’s Interserve company page here.


Readers' comments (1)

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.