The stand-off between Interserve’s lenders and shareholders is set to come to a head at a specially convened general meeting in four weeks time.
Shareholders will be asked to vote on the board’s latest updated rescue plan hammered out with major lenders.
The meeting was called by rebel US hedge fund and shareholder Coltrane Asset Management, which owns a 27% stake in the heavily indebted contractor.
The hedge fund also demanded the outsourcer’s entire board step down, except for chief executive Debbie White.
It has table alternative outline proposals, which would see 65% of Interserve’s equity handed to lenders in exchange for £436m of debt. A proposed £75m rights issue would take up 25% stake, leaving existing shareholders owning 10%.
In the event of failure to pass a plan lenders are reported to have placed Ernst & Young on alert to step in to manage the business if it was forced into administration.