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