Jarvis contracts change hands

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The Independent Online

Barclays Private Equity, infrastructure investor Semperian and HBOS are set to take control of facilities management contracts run by Jarvis, the failed rail and support services group.

They are part of a consortium that owns equity stakes in schools and hospitals contracts run by Jarvis Accommodation Services (JAS). It is negotiating with Deloitte, Jarvis's administrator, to control the contracts' cashflows , which it would sell on to other providers later this year. This would leave JAS with seven wholly owned contracts, including Scottish schools in East Renfrewshire and Balfron, which Deloitte can sell. It is thought this would raise little more than £2m for creditors.

Both moves would help protect the jobs of the division's 780 staff. This will come as a relief after 1,100 employees at Jarvis, chaired by Steven Norris, were made redundant on Wednesday – most of them skilled railway workers.

It is rumoured that Babcock, the support-services giant, has taken over some of Jarvis's rail-track renewal work.

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