The construction giant has finally succumbed to its massive debt after last-ditch talks with lenders fail.
Companies: Carillion plc
Carillion (LON: CLLN) has finally crumbled under its masses of debt with Management announcing today it has gone into liquidation with immediate effect.
The UK's second-largest construction company said talks with stakeholders over the weekend had failed after it asked for more funds to continue trading, whilst it attempted to rectify its massive £1.5 bn debt.
The Group employs almost 20,000 people in the UK and has been a part of some of the UK's largest private sector construction projects. These include the redevelopment of Battersea Power Station as well as the upgrade to Anfield Stadium in 2016. It is also the second-largest supplier to Network Rail and in 2017 was awarded a £450m contract on the HS2 project.
It also holds many Government contracts including the building of schools and maintenance of half of the UK's prisons.
The Group had international operations in Canada, the Middle East and the Caribbean where it employed a further 23,000 people. In its last full financial year it had Revenues of almost £4.4bn.
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.
