Interserve has more than halved in value as investors sold shares in reaction to a possible debt restructing that could result in significant losses for its lenders and wipe out the investments of existing shareholders.
The company, one of the government’s biggest outsourced services contractors, sought in a statement to allay market fears that it was heading towards the precipice a year on from the collapse of its erstwhile rival Carillion.
The company said that it was in “constructive discussions” with its banks and other debt-holders regarding a plan to reduce its £614m of borrowings, which would be presented to shareholders early next year.
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