Royal Hospital contractors Carillion collapse in to administration

Tuesday, 16 Jan, 2018

Carillion also has global contracts, such as five schools in Ireland, noted by news website The Journal.

The firm's sudden demise will also be a serious blow for major shareholders like Hargreaves Lansdown Stockbrokers, Brewin Dolphin and Scottish-based asset manager Kiltearn Partners who at one point collectively owned more than 22% of the business, according to markets data from the Financial Times.

Officials from several unions representing workers on the railways, construction sites, prisons, hospitals and schools are seeking information from the company and ministers.

"We have been warning since Thursday night that we thought the collapse of the company was imminent".

A government spokesman has said: "HS2 is not at risk" and "will still be delivered".

Carillion, the UK's second largest construction company, has around 20,000 United Kingdom employees and is a major supplier to the government.

The company, in a statement released Monday, says it had no choice after weekend talks with creditors and government officials failed to garner the short-term financing it needed.

"The Government has continued to spoon-feed the company taxpayers' money by awarding them yet more contracts".

The collapse of Carillion has prompted fierce criticism of the Government over its awarding of hundreds of contracts to the firm, with many business leaders warning of dire knock on effects to small firms in the fallen giant's supply chain.

The company said despite considerable efforts, discussions to secure funding have not been successful and has therefore chose to make an application to the High Court for a compulsory liquidation of the business.

"Additionally in order to support staff, and in this instance it will apply to staff working for the private sector as well as the public sector contracts of the Carillion group, we have established a helpline using Jobcentre Plus through its rapid response service".

Cabinet Office Minister the Rt Hon David Lidington CBE MP said: "It is regrettable that Carillion has not been able to find suitable financing options with its lenders but taxpayers can not be expected to bail out a private sector company".

"The Scottish Government has been working to manage or eliminate risks associated with Carillion's difficulties since July past year and we have contingency plans in place for affected contracts, including the AWPR where the contract contains a mechanism for the remaining two joint venture partners to deliver the project and we expect that work to continue".

Media reports cited Carillion's biggest problems as cost overruns on three big public sector construction projects in Britain.

"All employees should keep coming to work, you will continue to get paid".