Carillion goes into liquidation after talks fail

Carillion goes into liquidation after talks fail

Carillion goes into liquidation after talks fail

Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS. Marie, Ottawa and Nunavut.

The compulsory liquidation is as a result of these talks failing to come to a conclusion, and will be effective immediately.

The chairman of Carillion, Philip Green, said it was a "very sad day" for the company's 43,000 staff, suppliers and customers.

The company building the new hospital, Carillion, has confirmed it is going into liquidation. Last week some of the company's largest bankers balked at providing any extra lending without some intervention from the government. It will also cover some of the costs of the liquidation but it will not provide a bail out.

One minister said that it was regrettable Carillion could not find financing options amongst its lenders, but the taxpayer should not be expected to foot the bill for a company in the private sector.

Alexandra Bailey, the council's Director for Property, Assets and Investment, said: "We expect school staff will be in work as normal today but if this doesn't happen we will provide school lunches to schools needing support and the fire service are on standby to deliver them". The county council has been planning for the possibility of Carillion's collapse for some time, and schools have been closely involved. Early past year the company issued a bullish forecast, predicting a strong 2017. Despite this, further profit warnings were issued in September, and again in November. The company wrote off £800-million worth of work in July, suspended its dividend and dismissed chief executive Richard Howson.

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The company employs 20,000 workers across Britain AND has been struggling under £900 million of debt and a £587 million pension deficit.

The Government said it was "keeping a very close eye" on both the negotiations and the contingency plans, which have been drawn up.

Economy secretary Keith Brown said the Scottish Government has been working to manage or eliminate risks associated with Carillion's difficulties since July past year.

Neil Wilson, a senior market analyst with ETX Capital, said in an email on Monday: "This was a case of bad management and pitching for contracts at any price, but the government and banks could, or maybe should, have done more".

Transport secretary Chris Grayling insisted he was given "secure undertakings" about the company's health when he awarded it the HS2 contract after its second profit warning last summer. The government did not want to step in to prevent it from collapsing.

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