Bypass firm Galliford Try to raise £150m after Carillion collapse

Aberdeen bypass workImage copyright
Sepa

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The Aberdeen bypass project is usually likely to be completed later This particular year

Building firm Galliford Try plans to raise £150m coming from investors after Carillion’s demise left a cash shortage on the Aberdeen Bypass project.

The company announced the plan on Wednesday, revealing a £25m exceptional charge in its half-year results.

Bypass partners Galliford Try in addition to Balfour Beatty must currently cover the costs arising coming from Carillion’s collapse.

They said the fundraising would certainly ensure they did not have to divert money away coming from different projects.

Carillion went into liquidation in January, after talks between the company, its creditors in addition to the UK government failed.

‘Exceptional charge’

the item is usually involved in several infrastructure projects in Scotland, including the electrification of the central Scotland railway line in addition to the extension of platforms at Edinburgh’s Waverley Station.

different major projects involving Carillion include the HS2 high-speed rail line, as well as managing schools in addition to prisons.

Galliford Try announced the plan in its half-year results, as “additional joint venture contributions arising coming from Carillion Plc (Carillion) failure prompt exceptional charge of £25m.”

Chief executive Peter Truscott said: “We have reviewed the impact on our business coming from the compulsory liquidation of Carillion, which has resulted in a further reassessment of the likely out-turn coming from our participation inside Aberdeen Western Peripheral Route (AWPR) joint venture, leading to an exceptional charge of £25m.

“Reflecting the additional financial obligations arising coming from This particular contract, we have today announced our plans for a capital raise of £150m.”

The 58km long Aberdeen bypass is usually scheduled to open later This particular year. the item is usually one of the biggest infrastructure projects in Scotland with an estimated cost of £745m.

Scottish Labour MSP Lewis Macdonald said the development was “deeply concerning”.

He added: “SNP minister Keith Brown has repeatedly insisted the AWPR works will not be affected by Carillion’s collapse – although of which currently seems to be anything although true.”

He added: “Mr Brown must currently urgently reassure communities in addition to workers inside north-east of which work in addition to jobs on the AWPR will not be adversely affected by This particular latest announcement.”

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