Interserve lenders appoint EY in wake of market sell-off

Oliver Gill
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A worker pulls in rope from a constructi
Interserve had 50 per cent of its market capitalisation wiped away in September (Source: Getty)

Lenders to support services firm Interserve have appointed financial advisers as fears grow about the future of the troubled contractor, according to reports.

HSBC and Royal Bank of Scotland are among a syndicate of lenders to draft in accountancy giant EY, Sky News reported this afternoon.

Around half of Interserve's market value was wiped away in September after the firm warned that July and August trading had been "disappointing" and the cost to exit its waste management business would "significantly exceed" the £160m previously guided.

Subsequently, the contractor's shares have regained ground with two key contract awards and a place on a list for a lucrative £8bn framework to redevelop government buildings.

Meanwhile, EY recently landed a pivotal adviser role as Interserve rival Carillion hopes to turn its fortunes around.

Sources told Sky News Interserve's lenders were unnerved by last month's statement, this was despite the contractor saying it was operating within its current banking facilities.

Interserve and EY declined to comment.

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