In a bold attempt to clear some of its £650M debt, Interserve is reportedly looking to hand its profitable RMD Kwikform business to lenders.
The troubled contractor and services giant Interserve is looking to offload its profitable building materials division RMD Kwikform, according to a report by Sky News.
Trouble is mounting for the former giant – feared next Carillion as debts skyrocket and shares plummet. Last month, Interserve announced that it expected its year-end net debt is to be in the range of £625M to £650M, up from £503M last year.
Interserve, which works in prisons, schools, hospitals and on the roads, said it was “making good progress” on a long-term recovery plan at the time.
While details of the plan are yet to be finalised and are expected to be announced early next year, Interserve has said that it will involve the issuing of new shares.
However, shares in the company fell by 75% last week after it revealed details of a rescue deal, dipping as low as 7p a share, valuing the company at just £14M.
RMD Kwikform has been valued at £250M-£300M. Last year it produced an £18M profit on a £100M revenue and is one of the few remaining gems for Interserve.
The company is expected to make an announcement this week on the future of RMD.
Interserve have been approached for comment.
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