Interserve rescue plans boosted by white knight’s £140m debt trade | City A.M.

A Scottish brewing tycoon has snapped up £140m of Interserve’s bank debt in a bid to save the troubled outsourcer.

Multi-millionaire Punch Taverns founder Alan McIntosh has hoovered up debt on secondary markets from the likes of Barclays and Lloyds through family office investment fund Emerald Investment Partners.

Keen to reduce their exposure to the contracting sector, mainstream banks have reportedly been selling their positions for as little as 50p in every pound.

Interserve is one of the government’s largest strategic suppliers. Since January 2015 it has won 135 awards worth £867m and been listed on public frameworks worth an estimated £1.9bn. It employs 80,000 people worldwide, including 25,000 in the UK.

Read more: Interserve: Crucial refinancing talks have not “stumbled”

The firm is trying to agree new financing terms with its syndicate of lenders. Last year Interserve slashed profit projections and warned it would breach banking covenants.

It agreed short-term funding of £180m in December, which must be refinanced by the end of March.

Shares in the London-listed firm have seesawed in recent weeks, with investors easily spooked as a deadline to finalise terms approaches. Last week Interserve denied reports refinancing talks had “stumbled”. Several City sources have told City A.M. draft banking terms are being circulated and talks are moving forward on schedule.

A spokesperson for Emerald confirmed it was a lender to Interserve, adding:

Interserve is a compelling business with a strong management team and clear strategy. We look forward to working closely with the company’s management team and key stakeholders to support future growth in the business.

Read more: Contractor concerns weigh heavy on Mitie and Interserve