UPDATE: Carillion enters compulsory liquidation
Carillion, the UK’s second largest construction company, says that talks over the weekend with the UK government, banks and other stakeholders have failed to restructure its debt and gain the financial support needed to continue trading while discussions continued. Consequently it has issued a statement to investors instructing them it has “no choice but 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,” the company said in a statement. “We anticipate 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, and we further anticipate that an order will be granted to that effect.”
It added: “We anticipate that the Official Receiver will make an application to the High Court for PricewaterhouseCoopers LLP to be appointed as Special Managers.”
In addition to its engineering and construction operations, Carillion is also a major outsourcing partner in the UK’s public sector. Philip Green, chairman of Carillion, added the company will be able to continue providing those services to the UK government after funding was agreed.
“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,” said Green. “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.”
