Construction firm Carillion set to enter into liquidation
Construction firm Carillion is set to enter into compulsory liquidation with immediate effect, putting thousands of jobs at risk.
The firm, which is a major contractor on the HS2 high-speed rail link, employs around 19,500 people in the UK.
Over the weekend, Carillion held discussions with its key financial and other stakeholders, including Her Majesty’s Government (‘HMG’), regarding options to reduce debt and strengthen the group’s balance sheet.
As part of these talks, Carillion asked those stakeholders for limited short term financial support to enable it to continue to trade whilst longer term engagement continued.
The company has announced that those discussions have not been successful, and the board of Carillion has therefore concluded that it will begin to take steps to enter into compulsory liquidation with immediate effect.
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.
It is believed that the Official Receiver will make an application to the High Court for PricewaterhouseCoopers LLP to be appointed as Special Managers, to act on behalf of the Official Receiver.
Philip Green, chairman of Carillion, said: “This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
“Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the Board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.
“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.
“We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.”