Interserve is seeking approval from shareholders to extend the company's borrowing limit.

The firm has called for a shareholder meeting at the end of April to approve raising its borrowing limits to £834 million.

As of the end of 2017, the company revealed it is carrying net debt of £513m, while a number of write-downs will be contained in its forthcoming financial results.

Interserve said: "The increase in the current borrowing limit is required as significant balance sheet write-downs are expected to be contained in the 2017 Financial Statements.

-- Advertisement --

"These write-downs are expected to comprise an impairment on goodwill as well as a number of other non-underlying items, the significant majority of which are either non-cash or were reflected in the net debt guidance that the Company provided in its update announcement on 10 January 2018, in which the Company stated that it anticipated that net debt at year-end 2017 would be approximately £513 million.

"As announced on 21 March 2018, discussions with the Group’s lenders and other financial stakeholders have continued to progress well, with agreement in principle on major commercial terms of the Group's proposed refinancing now reached.

"These commercial terms remain subject to credit approval from all providers before the new facilities are finalised. With the addition of the new facilities the Group will have cash borrowing facilities of £834 million immediately following the refinancing completion and through to September 2021, subject to certain step-downs in the new facilities over the period."

(LM/MH)