Things keep getting worse for Interserve (IRV). On Monday morning, the outsourcer announced it is likely to attempt to convert some of its substantial debt pile (£646m at the last update) to equity, which would significantly dilute existing shareholders.
IC TIP:
Sell
at
12p
Existing shareholders would be required to approve the plan once finalised, which is likely not to be until the new year. Despite the prospects of "material" dilution, it looks like there are few other good options. The shares were down more than 50 per cent in early trading.
