Military Bases Contractor Moves To New Company After Administrators Appointed

The UK's military base on Ascension Island is among those which Interserve is contracted to support.

An outsourcing company with Ministry of Defence contracts has moved to a new company after administrators were called in.

It comes after Interserve failed to get its shareholders to approve a rescue plan.

The company runs a £265 million contract to provide support to some UK and overseas military bases, including sites in Gibraltar, Cyprus, Ascension Island and the Falkland Islands.

It also provides support to training bases such as MOD Corsham and MOD Lyneham.

Despite the move, Interserve's contracts, including those with the military, are expected to continue.

The company is also in the middle of a five-year, £230 million contract to provide services to US military sites in the UK.

A statement on the Interserve website said: "Interserve PLC (in administration) has announced the successful completion of the sale of the group.

"This alternative deleveraging transaction will restore the Group’s balance sheet and provide additional liquidity.

"The administrators have immediately sold Interserve’s business and assets to a new company, to be controlled by Interserve’s lenders.

"All companies in the Group other than the parent company will remain solvent, providing continuity of service for customers and suppliers."