Interserve seeking a bailout

Discussion in 'General Discussion' started by JohnD, 10 Dec 2018.

  1. JohnD

    JohnD

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  3. motorbiking

    motorbiking

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    Not wishing to make this political.. but given they employ 75,000 people and are still a going concern. I wonder about the wisdom of
    source https://www.theguardian.com/busines...alks-as-labour-calls-for-ban-on-new-contracts

    That would finish them off, whereas, as it stands they could get acquired so long as they still have a pipeline of future business.
     
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  4. Brigadier

    Brigadier

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    Would that mentality not put them in the "too big to (be allowed to) fail" situation though?
     
  5. motorbiking

    motorbiking

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    Bidding isn't winning. If you ban them from even bidding you cut them off and doom them to fail. Procurement departments are welcome to take financial stability in to account, but a ban (which would probably be illegal and open the govt to compensation claims) basically kills them. There are plenty of ways to trade safely with companies with poor financial stability.

    There are likely to be parts of the company that are viable and potentially profitable.
     
  6. Brigadier

    Brigadier

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    If they bid and miss out, they're gone anyway.
    If they bid and win, they'll likely just need a bigger bail out, further down the road.
     
  7. motorbiking

    motorbiking

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    There are ways it can work. It would not be unusual to include step-in rights or some sort of collateral warranty. Can you imagine if RBS were banned from taking on new customers during the crisis?

    Preventing them from winning new business pretty much kills any possibility of investment. Its just not smart if your goal is to protect those 75,000 workers jobs.
     
  8. Ian H

    Ian H

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    The Home Office should employ all the handymen/caretakers directly.

    I don’t know what percentage of Interserve staff do that role but that would keep many workers in work and save the government money.
     
  9. ellal

    ellal

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    As usual, privatisation/outsourcing has been shown to be a failure for everybody except a few individuals...

    When this company goes down, the pension fund will take a hit but the old boy network will find something else for those at the top to ruin...

    Privatise the profit, socialise the debt!
     
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  11. motorbiking

    motorbiking

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    If there is one organisation worse at delivery than companies who are really bad at delivery, its the public sector.

    clueless leading the blind for a large chunk of their activity. Jobs for life and tidy pensions, people don’t outsource to spend more they do it to reduce cost and gain flexibility.
     
  12. Ironically I was working for Carillion this time last year and I'm currently working for Interserve.

    Most people on my job are currently taking their siteboxes and tools off site. I'd imagine they're worried the receiver could petition for winding up should a deal not be made.
     
    Last edited by a moderator: 10 Dec 2018
  13. motorbiking

    motorbiking

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    Sorry to hear that - best of luck.
     
  14. I've seen it coming for months. There's an arrangement in place so l get paid by the client if they do fold.
     
  15. ellal

    ellal

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    I wonder how much evidence is needed before that attitude is finally shown up as being a total crock of s hit?
     
  16. SirGalahad

    SirGalahad

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    Private company, let them fail. Let the Bankers who lent them money take a hit, its all part of the business cycle, Schumpeter waves of creative destruction.

    If public services are important then have public provision.
     
  17. SirGalahad

    SirGalahad

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    Lol.
     
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