UPDATE 1-Interserve enters the administration after blocking the bailout agreement

* The actions of the payer are suspended after a fall of 34%

* 59% of shareholders voted against the debt conversion plan

* Company to enter the administration (Adding details, background)

By Iain Withers

LONDON, March 15 (Reuters) – Interserve, a troubled British subcontractor, is about to collapse after its shareholders have rejected a bailout package that would have reduced its debts and left control of the company. company in difficulty to its lenders.

Interserve shareholders voted 59 percent against a debt-for-equity bailout bid at a general meeting in central London on Friday, winning the victory of its largest shareholder, Coltrane, an American hedge fund. was opposed to the plan.

The company is now expected to visit a "pre-pack" administration on Friday night, as part of a plan overseen by EY, according to which the creditors of Interserve would buy its badets.

The company said the deal should allow the company to continue operating "normally" for its customers and suppliers.

The company's shares were suspended after a fall of 34%.

Interserve employs 68,000 people worldwide and is one of the UK Government's largest subcontractors, providing services ranging from school meals to cleaning hospitals.

He struggled after a series of misguided acquisitions and loss – making contracts that weighed on his finances and debt, raising fears that he will fall into insolvency, to the credit union, and to the bankruptcy. like the competing subcontractor Carillion.

The rejected bailout would have given Interserve lenders, including banks and hedge funds, a 95% interest in exchange for the cancellation of 485 million pounds ($ 641.95 million) badets of existing investors being diluted to 5%.

A pre-pack administration would see the entire value of the shareholder shattered.

Coltrane – who has proposed its own bailout plan for Interserve, which protects more value for shareholders – wants to participate in any Interserve badet purchase offer. ($ 1 = 0.7555 pounds) (reported by Iain Withers, edited by Rachel Armstrong and Lawrence White)