BREAKING NEWS

BREAKING NEWS

Outsourcer Interserve to raise 435.2 million pounds to cut debt

Outsourcer Interserve to raise 435.2 million pounds to cut debt
FILE PHOTO: Interserve offices are seen in Twyford, Britain January 17, 2018. REUTERS/Peter Nicholls/File Photo -
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PETER NICHOLLS(Reuters)
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(Reuters) - Troubled British support services provider Interserve Plc said on Wednesday it would raise 435.2 million pounds in cash through an issue of new shares as part of its plan to cut debt and avert a collapse like Carillion.

Interserve said earlier this month that it has struck a rescue deal that will see lenders take control of the company by swapping millions of pounds worth of debt for new shares, giving the outsourcing group a chance of survival.

Separately, Interserve also reported a smaller loss before tax of 111.3 million pounds for the 12 months ended Dec. 31, but said Britain's construction market remains volatile because of the country's impending exit from the European Union and a hit to construction confidence after the high profile fall of Carillion.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr)

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