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Troubled Carillion lines up administrator amid rescue talks

13 January 2018

Last summer, Carillion took on two five-year MoD contracts worth £158m to provide facilities management services at more than 230 military sites across Scotland, the north of England and northern Ireland.

Carillion also said turnaround proposals on the table were likely to cost shareholders.

Talks between the firm and lenders HSBC, Barclays, Santander and Royal Bank of Scotland have centred on options to reduce debts and recapitalise or restructure the group's balance sheet.

But it is perhaps best known for being one the largest suppliers of services to the public sector.

"It would have major implications for the outsourced government contracts the company holds, as well as the firm's thousands of workers, those in the supply chain and those who rely on Carillion's pension fund".

In July a year ago it won contracts to build Britain's new High Speed 2 rail line, a key project that will better connect London with the north of England.

It also maintains 50,000 homes for the Ministry of Defence, manages almost 900 schools and manages highways and prisons.

This all follows the revelation last week that Carillion is being investigated by the UK's Financial Conduct Authority over a series of Stock Exchange announcements it made before last July's profit warning.

Shadow business secretary Rebecca Long-Bailey said: "The collapse of Carillion could provoke a serious crisis".

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In recent days, McAuliffe has refused to rule out the possibility, though he would preclude a run for Congress anytime soon. He continued, "And it wouldn't be hard to do it, but you know this guy thinks he can intimidate everybody".

Carillion this evening dismissed reports lenders have rejected a critical restructuring plan.

Employing 19,500 people in the United Kingdom and 43,000 in total around the world, Carillion will today meet the UK's Pension Regulator and the pension rescue body, the Pension Protection Fund, because included in Carillion's liabilities is a pension shortfall of £587m.

A Government spokeswoman said: "As Carillion is a major supplier to Government it should come as no surprise that we are carefully monitoring the situation while working to ensure our contingency plans are robust".

The FT reported that Cabinet Office minister David Lidington met more than 10 ministers on Wednesday including business secretary Greg Clark, transport minister Jo Johnson, and chief secretary to the Treasury Liz Truss.

It is also one of the biggest suppliers of maintenance services to Network Rail and manages schools, roads and prisons.

Meanwhile the union Unite is calling on the Government to consider all possible options including bringing contracts in-house, as doubts continue to grow over the future of troubled construction and outsourcing giant Carillion.

LONDON, Jan 12 (Reuters) - British building and services company Carillion remains in "constructive discussions" with its creditors and suggestions they have rejected its business plan are incorrect, the company said on Friday.

Government officials and regulators will be holding crisis talks today aimed at safeguarding the interests of more than 28,000 pension scheme members who could face cuts to retirement payments if Carillion does not survive. "It would be inappropriate for us to comment on any individual contractor's internal financial governance".

Troubled Carillion lines up administrator amid rescue talks