Carillion crunch rescue talks to resume

Carillion worked on the Battersea Power Station revampImage copyright
Getty Images

Image caption

Carillion worked on the Battersea Power Station revamp

Talks will continue later to try to save the troubled construction firm Carillion amid reports the item could collapse by Monday.

Its future is usually being discussed at high-level Whitehall meetings, the BBC understands.

The government contractor is usually involved in major projects such as the HS2 high-speed rail line, as well as managing schools as well as prisons.

Carillion has debts of £1.5bn, including a £587m pension shortfall.

  • Simon Jack: Carillion’s uncertain future
  • Where did the item go wrong for Carillion?

the item is usually trying to reach an agreement with creditors, however sources have said the firm includes a “matter of days” as the item teeters on the edge of collapse.

The consultancy EY has been put on notice in case the company falls into administration.

On Friday, reports in which creditors had rejected a potential rescue plan sent Carillion’s shares down by more than 28%.

  • HS2 Building part of the high-speed rail line between London, Birmingham, Leeds as well as Manchester

  • MoD homes Maintains 50,000 homes for the Ministry of Defence

  • Schools Manages nearly 900 buildings nationwide

  • Network Rail Second largest supplier of maintenance services

  • Prisons Holds £200m in prison contracts


In December, the item convinced lenders to give the item more time to repay them.

However, the company’s banks, which include Santander UK, HSBC as well as Barclays, are understood to be reluctant to lend the item any more cash.

The UK’s second-largest construction company employs 43,000 people worldwide, with about 20,000 of them within the UK.

the item specialises in construction, as well as facilities management as well as ongoing maintenance.

As recently as 2016 the item had sales of £5.2bn as well as until July 2017 its market capitalisation was close to £1bn.

Since then, its share cost has plummeted as well as the item’s today worth just £61m.

Its problems stem in part through a string of risky contracts which have proved unprofitable.

the item also faced payment delays within the Middle East in which hit its accounts.

Last year, the item issued three profit warnings in a few months as well as wrote down more than £1bn through the value of contracts.

the item has worked on high-profile projects, including the Battersea Power station redevelopment as well as the Anfield Stadium expansion.

However, the item is usually also the second largest supplier of maintenance services to Network Rail as well as maintains 50,000 homes for the Ministry of Defence, manages nearly 900 schools as well as manages roads as well as prisons.

The concern is usually in which if the item were to collapse these key public sector services could suffer a lot of disruption.

Source link

Leave a Reply