Carillion bosses make last-ditch plea for rescue

  • Carillion bosses make last-ditch plea for rescue

Carillion bosses make last-ditch plea for rescue

Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS.

Administrator firms PwC and EY were also reported to have been put on standby as talks about the firm's future carry on.

It comes as the Government, pension authorities and stakeholders met on Friday in an attempt to thrash out a rescue package for the firm which would help it avoid collapse.

Her views were echoed by Unite union assistant general secretary Gail Cartmail, who said: "The government must consider all options while the future of Carillion hangs in the balance, including bringing contracts back in-house".

Their attitude is said to have prompted senior figures close to Carillion to discuss the possibility of emergency financial support from the Government. We urgently need to know just how exposed the Scottish Government and the public purse is if Carillion were to collapse.

A spokeswoman for the Pension Protection Fund said it was "aware of the discussions between the company, government and banks and, along with the trustees and the Pensions Regulator, will act as it always does to protect the interests of Carillion scheme members and levy payers". It maintains 50,000 homes for the Ministry of Defence, manages almost 900 schools and is heavily involved in the highways and prisons.

The company is a major supplier to the Government, maintaining prisons across the country and managing around 900 schools.

Carillion, which has had to contend with a slowdown in many of its major markets, has seen its share price plummet from 230p a year ago to less than 15p on Friday.

The Tate Modern commissioned six artists whose work is intricately linked to the urban environment and unveiled the giant street art
Image The company also built the Tate Modern

"The government remains supportive of Carillion's ongoing discussions with their stakeholders", Blain said.

"You can see that one the one hand, it's in everybody's best interest that Carillion continues, but at the same time it's hard to chart a way forward".

In a note to clients, Peel Hunt's analysts said: "We suspect that given its mounting liabilities, recent press comment, growing customer worries and supply chain hesitancy that Carillion will be forced (by the banks) to accelerate its financial restructuring".

A spokesperson for the Pensions Regulator said the organisation remained "closely involved" in discussions with Carillion and the trustees of its pension schemes.

A Transport Scotland spokesman insisted Carillion had "no intention of withdrawing" from the Aberdeen bypass project and that "they too remain committed to completing it in accordance with the contract".

Shadow business secretary Rebecca Long-Bailey said the collapse of Carillion could "provoke a serious crisis".

"As Carillion is a major supplier to government, it should come as no surprise that we are carefully monitoring the situation while working to ensure our contingency plans are robust".