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Interserve faces 66 mln pound payout if rescue deal blocked- Sky News

Feb 14 (Reuters) - Troubled outsourcing group Interserve would have to pay 66 million pound ($84.54 million) immediately to lenders if its largest shareholder Coltrane blocks the debt restructuring deal and removes some board members, Sky News reported on Thursday.

The company will also have to repay "tens of millions of pounds" if its Chief Financial Officer Mark Whiteling is removed from the board, the report said https://news.sky.com/story/interserve-faces-debt-bombshell-over-hedge-fund-coup- 1 1 6 3 7 2 1 0 .

In a bid to avert a Carillion-style collapse, Interserve had last week revealed plans of a rescue deal that will see lenders take control of the company by swapping millions of pounds worth of debt for new shares.

According to the deal, Interserve would cut debt by more than half to about 275 million pounds after creditors wrote off loans in return for new equity worth 97.5 percent of the share capital.

Interserve had also said that Coltrane Master Fund had called for eight of the company's directors to be removed, while it had kept its support for Chief Executive Debbie White.

Interserve declined to comment on the report and Coltrane was not immediately available for comment. Interserve shares were down 1.7 percent at 11.38 pence. ($1 = 0.7807 pounds) (Reporting by Sangameswaran S and Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur)