Interserve snubs hedge fund rescue

AILING outsourcer Interserve has attacked a rogue investor plotting a boardroom coup.

It poured cold water on a rescue plan cooked up by US hedge fund Coltrane, its largest shareholder with a 27pc stake. The outsourcer is trying to push through a rescue deal which would hand control to its creditors, who are owed £807m, and leave existing shareholders with nothing.

In return debts will be cut by £300m, giving it a better chance of survival. Coltrane’s plan would see Interserve raise £110m from shareholders, and allow Coltrane to retain more of its stake. The hedge fund has also called for most of the board to be sacked.

But Interserve said Coltrane will not allow details of its plan to be shown to lenders, who would need to sign off on any agreement.

Interserve chairman Glyn Barker said: ‘‘The board also notes that the Coltrane proposal is non-binding and unfunded and remains subject to due diligence. There is therefore no certainty that Coltrane’s proposal could be successfully implemented.’

Coltrane said: ‘The only way to achieve a consensual outcome is for the board to take their responsibilities seriously, and engage with us on our manifestly better proposal.’