News
Jessica Fino 11 May 2018 11:02am

FCA launches investigation into Interserve

Troubled construction company Interserve has announced it is under investigation by the UK financial watchdog

The construction services and support business said it received a formal notice that has been referred to the enforcement division of the Financial Conduct Authority (FCA) for an investigation, in relation to its handling of inside information.

The investigation will also look into Interserve’s market disclosures relating to its exit from its energy-from-waste business between July 2016 and February 2017.

Interserve said it will “co-operate fully” with the investigation and update the market on the outcome.

The FCA declined to comment.

Following the collapse of construction company Carillion, the government asked Deloitte to advise on public sector contracts held by Interserve back in February.

Interserve saw its shares plummet in September last year after posting a profit warning. PwC was brought in as financial advisors, while a consortium of lenders also engaged EY for financial advice.

Then in March this year, the company agreed a deal with its lenders, securing its short-term survival.

It announced it had agreed “in principle” to new terms that – subject to credit approval – would provide new cash facilities of £196.6m and bonding facilities of £95m. The deal meant the company now had cash borrowing facilities of £834m until September 2021, subject to step-downs.

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