Interserve is coming under pressure to hive off its most profitable business as part of a rescue deal with lenders. The Midlands-based government contractor is trying to swap debts of more than £600 million with lenders in exchange for them taking equity in the business. The company said yesterday that it had “conditionally agreed” the “key commercial principles” of a rescue deal. However, it also said that lenders had requested that its RMD Kwikform subsidiary, which provides temporary structures to the construction industry, is split off and placed in a separate holding company owned by them. Interserve is trying to reach a deal nearly a year after the collapse of Carillion, its larger rival, which left billions of pounds of unpaid liabilities.

Source: The Times December 22, 2018 00:04 UTC