Knowle relocation project: how vulnerable is Honiton HQ builder? >>> and how 'financially stable'?

Things are not looking good for Interserve:
Futures Forum: Knowle relocation project: how vulnerable is Honiton HQ builder? >>> outsourcing firm 'seeks second rescue deal'

In fact, things are looking particularly bad, as noted by the EDW blog:

GOOD JOB EDDC’S HQ IS ALMOST FINISHED … AND LET’S HOPE IT IS PERFECT … !

9 DEC 2018

“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

Good job EDDC’s HQ is almost finished … and let’s hope it is perfect … ! | East Devon Watch

With more from the Sunday Times:

Call for halt to new Interserve contracts

John Collingridge
December 9 2018, 12:01am, The Sunday Times

The outsourcing company is a significant government supplierBENOIT TESSIER/REUTERS

Labour is calling for Interserve to be temporarily halted from bidding for new government contracts amid fears over its finances.

The cleaning and building company is believed to be heading for a debt-for-equity swap with its lenders as it creaks under a debt pile totalling £614m as of June. The debt swap could wipe out shareholders.

Interserve is a big government supplier, with long-term deals for schools, hospitals and motorways, and is under intense scrutiny from the Cabinet Office after the collapse of Carillion.

Jon Trickett, Labour’s shadow minister for the Cabinet Office, said: "The government must ensure all contracts with Interserve are reviewed and they are prevented from bidding for public sector contracts until they have proved they are financially stable"…

Call for halt to new Interserve contracts | Business | The Sunday Times
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