IMDGroup.info

 

Latest Business News

 
  


Plans in place for Carillion collapse

  

The government has made contingency plans for the collapse of Carillion, the UK’s second largest construction company and a key provider of public services.
 
The troubled contractor which has 20,000 UK staff and is an important supplier to the government, including a contract for work on the HS2 rail link held crunch talks with its creditors today to try to persuade them to back a rescue plan.
 
The company ran into financial difficulties last year after issuing three profit warnings in 5 months and writing down more than £1bn from the value of contracts.
 
It has debts of about £1bn and a £600m pension deficit, but a stock market value of just £100m after its shares collapsed 90%. Last week it emerged Carillion was being investigated by the Financial Conduct Authority over the timeliness and content of announcements made by the company between 7th December 2016 and 10th July 2017.
 
The proposed refinancing is expected to involve its lenders swapping their debt for Carillion shares, which would leave existing investors with little or nothing. As part of the package, its pension fund or the pension protection fund could end up as a major shareholder.

 
 

 

News Updates

 
              LOGO: Truthdig: Drilling Beneath the Headlines. A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
 
 
 
Do you want to advertise with us?
dmoz.org