UK construction firm Carillion collapses

AFP, LONDON: British construction group Carillion announced its immediate liquidation yesterday after the heavily-indebted company failed to secure a financial rescue from the UK government and banks in last-ditch talks.

Carillion, which employs 43,000 staff worldwide including 19,500 in Britain, said that the government would nevertheless provide some funding to allow current state projects to continue, following crunch talks over the weekend.

"This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years," company chairman Philip Green said in a statement.

"Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future... In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision."

Carillion is a major UK government contractor involved in a wide range of projects from schools to the multi-billion-pound High Speed Two (HS2) railway.

But it has been struggling for some time and in July last year issued the first of several profit warnings.

Carillion yesterday said "it had no choice but to take steps to enter into compulsory liquidation with immediate effect".

It added: "An application was made to the High Court for a compulsory liquidation of Carillion before opening of business today and an order has been granted to appoint the Official Receiver as the liquidator of Carillion."

Despite the red flags, the government continued to award the company major public contracts, including on the flagship HS2 project, leading to criticism.

But the Conservative government of Prime Minister Theresa May said it wasn't its place to prop up the company.

 

UK construction firm Carillion collapses

AFP, LONDON: British construction group Carillion announced its immediate liquidation yesterday after the heavily-indebted company failed to secure a financial rescue from the UK government and banks in last-ditch talks. Carillion, which employs 43,000 staff worldwide including 19,500 in Britain, said that the government would nevertheless provide some funding to allow current state projects to continue, following crunch talks over the weekend. This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years, company chairman Philip Green said in a statement. Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future... In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. Carillion is a major UK government contractor involved in a wide range of projects from schools to the multi-billion-pound High Speed Two (HS2) railway. But it has been struggling for some time and in July last year issued the first of several profit warnings. Carillion yesterday said it had no choice but to take steps to enter into compulsory liquidation with immediate effect. It added: An application was made to the High Court for a compulsory liquidation of Carillion before opening of business today and an order has been granted to appoint the Official Receiver as the liquidator of Carillion. Despite the red flags, the government continued to award the company major public contracts, including on the flagship HS2 project, leading to criticism. But the Conservative government of Prime Minister Theresa May said it wasnt its place to prop up the company.