Key UK contractor Carillion denies rescue plan in doubt

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Up shit creek without the vestige of a paddle b unmarried construction firm Carillion has denied reports lenders rejected a make a pass ated rescue plan for the business.

The firm, which is a key government contractor for bulge outs including schools and prisons, said crunch talks with stakeholders were however ongoing.

The firm is struggling under £1.5bn of debt, including a allotment shortfall of £587m, raising fears about its future.

Ministers are design up plans to take over prisons contracts worth £200m from Carillion, the BBC comprehends.

Reports that creditors had turned down a potential rescue foresee sent the firm’s shares down by more than 28% on Friday.

Administrator firms PwC and EY were also banged to have been put on standby as talks about the firm’s future sweep on.

‘Constructive talks’

In a statement, Carillion said: “Suggestions that Carillion’s function plan has been rejected by stakeholders are incorrect.”

It said the firm remained in derived dialogue about short term financing while “longer relating to discussions are continuing”.

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

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The guidance, the Pensions Regulator and representatives from the firm held crunch talks to argue the firm’s options on Friday.


What does Carillion do?

The company is the UK’s second-largest construction suite and a key government contractor. It employs 43,000 people globally.

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

Oddly, it holds a contract to build part of the forthcoming HS2 high speed rolling-stock line and is the second largest supplier of maintenance services to Network Handrail.

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


A government spokeswoman disclosed it has been monitoring the situation to ensure its “contingency plans are robust”.

The non-exclusive secretary of the RMT rail union, Mick Cash, said Carillion’s hands were “not responsible for the crisis”.

He added that workers “should receive protection and guarantees from the government, including an assurance that runnings will be directly transferred over to Network Rail with all pursuits, pensions and rights safeguarded if Carillion goes bust”.

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In addition to its rail operations, Carillion also controls nearly 900 schools, provides services to the NHS and works with Resident Grid.

The assistant general secretary of the Unite union, Gail Cartmail, reported: “The government must consider all options while the future of Carillion associate withs in the balance, including bringing contracts back in-house.”

The company favoured talks with its lenders and advisers in London on Wednesday.

However, no disclosure has been made on a business plan to secure its future.

‘Major supplier’

The superintendence confirmed ministers met yesterday to discuss Carillion’s future and were “television screen the situation closely”.

The Financial Times reported that David Lidington, who was moved to the Lowboy Office as part of Prime Minister Theresa May’s reshuffle this week, convened the converging with Business Secretary Greg Clark, new Justice Minister Rory Stewart, new Thrill Minister Jo Johnson and Liz Truss, Chief Secretary to the Treasury.

A government spokeswoman communicated: “Carillion is a major supplier to the government with a number of long-term deals. We are committed to maintaining a healthy supplier market and work closely with our key suppliers.”

Carillion was laboured to ask its banks, which include Santander UK, HSBC and Barclays, for support after rupturing its loan agreements last year when it issued a series of profit prophecies.

The firm’s share price has plunged by more than 90% atop of the past year.

The company has been working on a plan which it believed “will provide the basis for the agreement of a proposal to restore Carillion’s up sheet”.

A spokeswoman for the Pension Protection Fund said it was “aware of the talks between the company, government and banks and, along with the trustees and the Annuities Regulator, will act as it always does to protect the interests of Carillion contrive members and levy payers”.

A spokesman for the Pension Regulator said: “We obtain been and remain closely involved in discussions with Carillion and the trustees of the shelve schemes as this situation has unfolded. We will not comment further unless it develops appropriate to do so.”

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