Britain’s second-largest group of companies on the brink of collapse this weekend and its directors
Sky News has learned that Carillion, which is building the HS2 high-speed rail link and other big government infrastructure projects, could crash into administration as soon as Monday. Its fate hangs on the outcome of emergency talks on Sunday. :: What does under-threat Carillion do? The company has drawn up a plan that would be able to provide for the payment of certain amounts of money in the future. One insider said it was “a make-or-break weekend”. “Without that commitment of support from the Government, administration is all but inevitable,” they said. Officials and Carillion’s lenders are understood to have held emergency talks on Friday night – the latest in a series of crisis meetings conducted in recent days. Government sources indicated this weekend that the ministers have decided to provide the best financial assistance to the loss-making process.
Sky News has learned that Carillion could be in administration by Monday
These decisions, which were published on Saturday, would expose Theresa May’s administration to a protracted and potentially chaotic fallout from the failure of a major government delivery partner. Employing 19,500 people in the UK alone, Wolverhampton-based Carillion is the second-largest supplier of network railroads and half of the UK’s approximately 50,000 homes for the Ministry of Defense. It is also involved in building the Aberdeen Bypass as well as schools across Britain. Without support from the Government, Carillion’s syndicate of banks will not provide up to £ 300m of new funding required from the end of the month. Sky News revealed on Friday that the EY, the accountancy firm, had been placed on the carillion. Ministers across Whitehall with responsibility for prisons, hospitals, hospitals and transport infrastructure have been drawing up contingency plans for the company ‘s collapse, including establishing new vehicles to take on Carillion contracts. In a statement issued after the stock market closed on Friday, Carillion denied reports by the Press Association and the Financial Times that it has rejected the company’s revised business plan. It says it continues to hold “constructive discussions with a range of financial and other stakeholders regarding options to reduce debt and strengthen the group’s balance sheet”. Carillion added that it was in dialogue about securing short-term financing “while the longer-term discussions are continuing”. Government Carillion does not survive. Carillion does not survive. The Pension Protection Fund (PPF), Carillion’s Pensioners’ Pension Plan (TPR), Carillion’s pension trustees and an assortment of City advisers. Carillion has a pension deficit of approximately £ 580m, although this figure would be expected to increase sharply if measured according to the cost of insuring its various retirement schemes. The talks took place 24 hours after a meeting of ministers from across a multitude of Whitehall departments to discuss contingency plans for their collapse. Sky News last weekend that Carillion needs millions of pounds within weeks to survive. The rescue plan is shown on the following pages: Carillion’s broad syndicate of lenders includes Barclays, HSBC and Santander UK, as well as a host of overseas firms.
An insider said it was ‘a make-or-break weekend’
A number of disposals aimed at raising cash, including that of its Canadian operations, are progressing more slowly than originally anticipated. Serco for £ 50m – against a broadcaster for disposal proceeds from £ 300m. If it can survive in the short term, Carillion is also one of the most important infrastructure delivery partners in the world. Such a plan would leave its pension scheme, or the Pension Protection Fund, as a big shareholder. Last week, the company was busy when the watchdog was launched on the “timeliness and content” of statements when it was the position of the financial market between December 2016 and July last year, when a massive profit warning feels its shares crashing by 75%. Since then, the company has had its executive team, including chief executive Richard Howson and finance director Zafar Khan. Mr Keith Cochrane, the trainer of Weir Group boss, with Andrew Davies due to arrive from the Wates Group as a permanent successor on 22 January. Carillion reported a first-half pre-tax loss of £ 1.15bn in September, while it announced just before. The company declined to comment on Saturday, while a government spokeswoman said “it should come as no surprise that we are carefully monitoring the situation while working to ensure our contingency plans are robust”.