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Interserve may breach covenants after trading downturn

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Interserve may breach covenants after trading downturn

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LONDON (Reuters) – Interserve <IRV.L> warned on Thursday it could breach its financing tests after a further deterioration in trading in its British construction and support services businesses in the third quarter. The company said it now expected operating profit in the second half would be about half the level of last year, and it has also made an additional 35 million pound ($46 million) provision for its troubled energy-from-waste contracts. “Taking all of these factors into account, we now believe there is a realistic prospect that we will not meet the net debt to EBITDA test contained in our financial covenants for 31 December 2017,” the company said. ($1 = 0.7573 pounds)

(Reporting by Paul Sandle, editing by James Davey)
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