Interserve in crucial funding talks with banks
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.
Interserve, which cleans the London Underground and manages the Ministry of Defence’s estate in the UK, has already warned on profits and delayed a test on its banking debt covenants until the end of March. It has secured £180m of additional short-term funding until then.
On Thursday, the company met with eight banks including Barclays, Lloyds Banking Group, RBS, MUFG, Sabadell and HSBC to present a revised business plan and request fresh funding for the company. The proposals are under consideration but no decision has yet been reached. Interserve declined to comment.
Attention has turned to Interserve following the collapse of its former rival Carillion, and in the wake of a profit warning that knocked nearly £1bn off Capita’s market value last week.
Source: Interserve in crucial funding talks with banks
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So what is causing all these outsources to find themselves financially strapped for cash? It cannot be the front line cleaning divisions wages and pensions as they are probably close to the minimum so maybe it is more a case of to many expensive chiefs and middle management and not enough indians. perhaps ….incompetent tendering to keep any rivals at bay from their lucrative cosy contracts? A lot of their HQ’s are located in top central offices which add to their overhead costs and reduce profits?. Or maybe just not very good business leaders many having morphed from Government departments and civil service in previous lives. Will be interesting to see which sections and management of these companies were having a feeding frenzy at the salary, bonus and pension troughs before the potential corpse drains dry. And some of these same Companies are maybe sniffing around the future NHS bonanza coming to a Trust near you. This crazy Government would stil probably award them contracts just to keep them going ignoring the profit warnings because most of the decsion makers are not savvy. The poor quality of the directors of Carillion on massive salaries and bonus plans just begged the question how on earth did they ever get their appointments? Based on their Enquiry performance they were just there to collect their fat cheques for turning up and not actually do anything. They were all virtually clueless as to what they were supposed to do,
what their business plans and running costs were. No way should that Hunt let the NHS be outsourced to private contractors US or UK ……lessons learnt would be appropriate with Carillion experience were it not for the fact the current Government are lemmings.
Interserve also “clean up” with several NHS contracts and are hugely criticised for their staff cuts, poor service and ill treatment of workers.
Scan the local papers once in a while on Google and you will see a much clearer picture than the nationals want to show you….
Info on Interserve –
http://www.nhsforsale.info/private-providers/interserve.html
Privatisation, which was only ever a money-making Tory cash-cow, is finally collapsing.