The growing crisis at the UK support services group Interserve is likely to result in the sale of its most profitable businesses.
Interserve is mulling the sale of RMD Kwikform, a long-established UK West Midlands based company, which provides formwork, falsework and shoring solutions to the worldwide construction industry and was once part of GKN. It is said to be one of the most profitable parts of the group.
Interserve is said to be holding outline discussions with its creditors about the sale of the business in hope of raising around £50m from the disposal. Such a some would materially ease the immediate financial pressure on Interserve although analysts are already warning that it may not be enough to ensure the long-term stability of the group, in the context of total debt of around £625m.
Last week, Interserve’s chief executive, Debbie White, admitted that the group was considering a number of options including disposals and a debt-for-equity swap to strengthen the group’s finances but said that more specific details would only be forthcoming in the New Year. Lazard is said to be advising Interserve’s board on the process.
Interserve declines to comment further on the process.