Two major shareholders in troubled UK construction and services firm Interserve will oppose a rescue package unveiled last week to halve the company’s debt burden.
Interserve chief executive Debbie White (Interserve)
Coltrane Master Fund objected when the deal was announced, calling on all Interserve board directors to be sacked except chief executive Debbie White (pictured).Â
It has now been joined by Dutch hedge fund, Farringdon Capital Management, CITY A.M. reports.
Together they hold approximately one-third of Interserve’s shares.
They object to the debt-for-equity swap rescue package because it gives Intererve’s lenders ownership of 97.5% of Interserve’s ordinary share capital.
Interserve needs 50% shareholder approval for its plan, and is expected to hold a vote in March.
Bram Cornelisse, chairman of Farringdon, told City A.M. last evening the fund is "supporting the efforts of Coltrane to achieve a more equitable outcome for shareholders compared to the deal suggested by management which hands almost the entire company to the debt holders".
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In other words, “it works for us two companies or stuff the lot of you” – profit-gorged management if ever there was any.