Tilbury Douglas

The energy-from-waste plant from which Interserve was removed in November 2016 is now £95m over budget, with the client planning to recover costs from the terminated contractor.

Interserve has announced it has reached an “agreement in principle” with its lenders and other financial stakeholders over its financing.

Interserve could cut up to 1,000 jobs worldwide this year as part of its turnaround efforts, which have received a fresh boost after a new investor purchased up to a third of company’s debt.

Interserve has dismissed reports that efforts to refinance its debt have run into difficulties.

An ex-Interserve employee has alleged a “culture of late payments” to subcontractors exists at the troubled contractor.

Interserve is closing down its power business as part of its restructuring efforts to boost profit.

Ministry of Justice minister Lucy Frazer has revealed that the department has contingency plans in place after Labour questioned preparations for the “possibility of the collapse of Interserve”.

Interserve has appointed Andy McDonald as the company’s general counsel and company secretary.

The Cabinet Office has sought to allay fears around Interserve by insisting that none of its suppliers are “in a comparable position to Carillion”.

Interserve’s net debt will hit £513m for 2017 and is expected to grow further this year, a trading update from the firm has revealed.