Interserve, one of the UK’s largest providers of public services, is urging shareholders to back a rescue deal or the firm could face administration.
Last month it reached a deal with creditors to prevent its collapse.
But if shareholders reject its debt-for-equity-swap plan in a vote this Friday, Interserve’s lenders could apply for a pre-pack administration.
This would mean the firm avoiding a Carillion-style collapse, but would wipe out existing shareholders.
A pre-pack administration enables a company to sell itself, or its assets, before it appoints administrators – who then take over the running of the business to protect creditors.
In a pre-pack,