Interserve Share Discussion Threads

[fenners66] 21/12/2018 10:34

Gets us back to very close to the 3% figure mentioned above

[fenners66] 21/12/2018 10:34

Good point , so 18:1 dilution ?

[billtucker] 21/12/2018 10:27

Fenners but if RMD is given to the lenders that should bring down debt by at least 200m and with further disposals on the cards the rights issue will most likely be for 300m.

[fenners66] 21/12/2018 10:05

Ouch 1.5x EBITDA potentially without RMDK ?

So what EBITDA is that - I have not got time to work it out right now

£50m ?

So £75m debt - down from £625m ?

So convert debt for equity at £550m ?
Vs current equity of £15.6m

So a 36:1 dilution ?

Issue 5,460 million shares ?

[cc2014] 21/12/2018 09:54

So, what we see here is a RNS designed to try and keep the customer and supply chain on board.

Probably the supply chain is most pressing as cash is piling out the door, but the customers are just as important and that's more a death by a thousand cuts.


So, would you now as a supplier/subcontractor be more inclined to work for IRV? Well I guess if you were in the middle of a long term contract you'd feel more comfortable about carrying on but starting a new one I don't think much has changed.

Deferring the payment of £50m by 3 months is only a deferral and I'm guessing is designed to try and stabilise things. One might argue that yet another 3 months will be enough time to get EfW sorted and some cash flow on that plus they have another insurance payment to come.

What is apparent is that they can't pay the £50m right now (or even part of it). Clearly the lenders want the £50m and RMDK before they do the d4e or one may even imply that the timeline of 1.5x EBITDA by the end of 2019 means they want further repayments before the d4e is done. Rape and pillage every bit of cash they can get before the debt swap.


But the issue remains today as it was yesterday. For IRV it's a crisis of confidence around the customer and supply chains. Will this RNS have done enough.
I'm not sure but I think the Board have done as much as could be expected. Shareholders have been updated in a timely manner.

[pal44] 21/12/2018 09:47

not invested here . It may turn around or go belly up more likely risk Vs reward .

[still waiting] 21/12/2018 09:05

pal, simply, why ?

[pundit1] 21/12/2018 08:57

Last time the refinancing cost £25million. How many millions did this plan cost?

[pal44] 21/12/2018 08:52

Waiting for 4p to buy .

[losses] 21/12/2018 08:41

Sucked in a few buyers by increasing the price... then down it goes

[wallywoo] 21/12/2018 08:14

This RNS is not for shareholders. They are screwed (as Kirk says) share price going down to 5p or less, once Rights announced. RNS is for employees and customers who are thinking of abandoning sinking ship. That really would stuff them

Don't get taken in by the HOPE here, you will loose 50%+ of your money buying here. Day trade it, if you must don't buy and hold. I have never seen this scenario working well for shareholders and been a trader for a long time

[careful] 21/12/2018 08:09

management have no incentive to run the company properly.
They screw the present owners (shareholders), hand it over to someone else gift wrapped, and hang on to their jobs.

the system is corrupt.

[kirk 6] 21/12/2018 07:50

Shareholders screwed ok for everyone else

[topvest] 21/12/2018 07:48

Looks like there is still a chance of surviving then, not that shareholders will get much. I've said it before, and I will say it again. This sort of quote is NOT appropriate UNTIL the deal is done...which it isn't.

Debbie White, CEO of Interserve, said:

"This progress on the Deleveraging Plan is excellent news for all our employees, customers and suppliers. It will provide us with a strong balance sheet and enable us to move forward with confidence and the ability to improve our business and deliver our long term strategy."

The CEOs statements for 2018 have been appalling and wildly optimistic from the very start of the year. For a company that is almost bust, it is not appropriate at all.

[pundit1] 21/12/2018 07:03

Billt - but sometimes the driver of the bus is prosecuted and sent to Court if say people are injured. Dangerous driving for example.

[billtucker] 20/12/2018 23:41

Pundit1- in a bus you have an insurance policy that covers the risk, and the vehicle is in the driver’s control. Unfortunately there is no such insurance policy to cover the risks around bad management, or any consequences arising from it, hence it is ultimately the company is accountable for it. Just like the company is still responsible for the debt, even though a good proportion of it was amassed under Ringrose, he can’t be made to pay it back. Look at what the FCA did to Tesco as an example.

[pundit1] 20/12/2018 23:31

BillT- perhaps individuals and not businesses should be accountable? Just a thought...they would be if driving a bus.

[billtucker] 20/12/2018 23:23

Pundit1- Unfortunately the FCA are investigating and rightly so should hold the company to account. Some investors as myself included, are 10s of thousands pound out of pocket due to false and misleading statements made by this company so it’s only fair they get a taste of their own medicine. It won’t be penalising recent shareholders as those that have bought the shares in the last 18-19 months knew perfectly well what they were buying into, and the FCA investigation has been well in the public domain.l. Why should holders who buy at 5p or 10p benefit at my and other holders expense? I would love this company to be held to account by the FCA, as it will also make other companies wary about misleading investors.

[pundit1] 20/12/2018 23:06

BillT - best hope then the FCA don’t investigate. Why penalise shareholders and put thousands of jobs at risk? Judgement....uhm? I know......I have an opportunity and - idea let’s go for double digit growth and borrow some dollars to do it. We can enter new markets after undertaking due diligence and our clients and shareholders, and banks, will be delighted. We can foster good relationships with our clients as we fully understand our business. So let’s do it....it’ll be ok. After all what can go wrong?

[billtucker] 20/12/2018 20:05

Whyyy- no because it’s the company that’s responsible not them as individuals, though it’s their lack of judgement behind it all. Also any compensation or fines will be 10s of millions which would have to have from IRV anyway, as Ringrose as person will not have access to that kind of money.

Topvest- not sure they’ll go bust, but yes the banks will be reluctant to do a D4E with the FCA investigation, virdior law suit underway as they will have to cough up for this.

[whyyy] 20/12/2018 18:50

If the FCA finds that there have been "irregularities", who will be punished - Ringrose and his cronies or the current bunch?

[topvest] 20/12/2018 18:45

I think the Kier rights issue flop is really bad news for Interserve. It’s now debt for equity or bust, probably the latter unfortunately.

[billtucker] 20/12/2018 18:30

Whatever it, the poster has not responded to my question on LSE asking for the facts and source. Maybe it's not happening and it's some poster talking out his ass. There should be a RNS either tommorow or Monday if his claims are true. Though i just fo not get Debbie white's logic at all.

[whyyy] 20/12/2018 16:05

It isn't a cash injection that Construction needs, it's a lethal injection.