By Rlljones (Own work) [CC BY-SA 4.0] via Wikimedia Commons
Yesterday, Interserve, a support services company, continued the firm’s nail-biting stock market ride as shares ended the day up by over percent after plunging to fresh lows earlier in the week.
The rally seemed to be a sign of investors adjusting to the vehement denial of Interserve over the weekend that crucial discussion with banks had failed.
The company holds some government contracts including one to manage a defence training base that is located on Salisbury Plain, admitted during a profit warning last October that the company was close to breaching banking covenants.
As Carillion, its fellow outsourcer, crashed at the beginning of 2018, hedge funds piled in to sort Interserve, increasing their bets against the company and driving the share price to crash.
Meanwhile, Deloitte has been brought in by the government in order to watch over Interserve and identify any similar crisis before it strikes.