Hedge Fund Takes on U.K. and Its Banks. Good Luck
New York-based Coltrane Asset Management wants to break up a restructuring that suits the British government just fine.
A general view of Interserve's headquarters in Twyford near Reading, England.
Photographer: Steve Parsons/PA Images via Getty Images
A U.S. hedge fund is taking on the British government and major banks in protest at the pain inflicted on ordinary shareholders in the latest rescue of a troubled U.K. construction company. It is picking a tough battle, but its plan is far from doomed.
The company in question, Interserve Plc, revealed outline details of a restructuring package designed to cut its excessive leverage. The group said in November it expected to end 2018 with net borrowings of about 650 million pounds ($843 million), about five times estimated Ebitda for the year. The rescue plan cuts that to 275 million pounds.