Union leaders warn Interserve £500m debt crisis is a looming ‘Carillion MkII’

TROUBLED outsourcing giant Interserve could be a “Carillion MkII”, union leaders have warned.

Shares in the firm – which holds government contracts in prisons, schools and hospitals – plummeted as it emerged it was in talks with lenders over a £500million debt pile.

Fears were growing that Interserve could be the next Carillion – the construction giant that collapsed in January. Thousands of jobs were lost and it cost taxpayers £148million. Shares fell as much as 75% to 6p in early trading yesterday as bosses tried to thrash out a recovery plan.

Interserve employs 75,000 people – 45,000 in the UK – with contracts that include managing the Ministry of Defence’s base on Salisbury Plain.

The Reading firm also has contracts for cleaning railway stations and providing probation services in England and Wales. Chief Debbie White STRONG Chief Debbie White insisted: “The fundamentals of our business remain strong.”

Gail Cartmail, of Unite, said: “We could be facing Carillion MkII.” The GMB union called for assurances for workers’ futures, and the RMT rail union said Interserve contracts should be moved “in-house”.

The Cabinet Office insisted: “We fully support them in their long-term recovery plan.”