Interserve: More woes

One of the UK’S largest providers of public services is seeking a rescue deal as it struggles with £500 million of debt.

Interserve, which works in prisons, schools, hospitals and on the roads, said it might look for new investment or sell off part of the business.

Workers at the Foreign Office and the NHS are among Interserve’s tens of thousands of UK employees. The company was looking for a second deal to refinance its debt which would mean lenders taking a significant loss while public shareholders would be “virtually wiped out”.

The government said it supported the company’s long-term recovery plan but the provider has continued to lose money.