Interserve rescue plan

[Bouleversee]

Also from Citywire:

Financial Times: Interserve, the British outsourcing company, has presented a rescue plan to banks in an attempt to secure fresh funding, with fears over its future raised by the demise of rival contractor Carillion.

Rights issue coming up or another Carillion?

[monabri]

In the case of IRV, does it not become increasingly difficult to raise a rights issue when the share price is dropping (for whatever reason)?

I feel that they've missed the launch window for the RI boat. Unfortunately it was a VERY narrow window and they were overtaken by other events.

The Jan 10th trading update which stated "the Group's operating profit for 2018 is now expected to be ahead of current market expectations" (*) was going to be the catalyst that would lead to the announcement of a RI.

The share price started to increase...120p and it looked to be working....then the bottom fell out of Carillion.

I suppose at the start of the year they were waiting and hoping Carillion would get a reprieve and that there would be a feel good knock-on to the IRV share price allowing them to push the RI forward ....hmmm, it didn't quite go that way as we know.

I'm hoping that the board were honest in their Jan 10th update (*) and that a recovery, however slow, will occur. HOWEVER, at some point in the recovery I will be gettin' outta Dodge when the financial pain is bearable.


(*) I could quote a certain Mr Victor Meldrew...but I won't.

[monabri]

ps

"Interserve Rescue Plan"

We might want to consider giving Scott, Virgil and Brains a call?

[Bouleversee]

They'd certainly have difficulty in raising any more money from me. However, the banks lost a lot over CLLN so they may not be too keen to cough up either, especially in the current climate. I presume the institutions have already been approached.

[monabri]

"Interserve is to sell its power business as part of the restructuring of its industrial division as it battles to reduce costs."


http://www.telegraph.co.uk/business/201 ... -division/

The FT, though, says it is closing the division.

No RNS and nothing on their website.