“Cabinet Office mandarins are believed to have sounded out Interserve’s rivals about the possibility of taking on some of the outsourcer’s work.
The cleaning and building company is heading for a debt-for-equity swap with its lenders as it creaks under debts of £650m. The swap could wipe out shareholders.
Interserve is a significant government supplier, with long-term deals for schools, hospitals and motorways. Jon Trickett, Labour’s shadow minister for the Cabinet Office, last night called for a temporary ban on the company bidding for public contracts — “until they have proved they are financially stable and there is no risk to the taxpayer”.
Interserve said: “The fundamentals of the business are strong and the board is focused on ensuring Interserve has the right financial structure to support its future success.”
Source: Sunday Times