Big UK government contractor sees shares plunge on debt woes

Carillion vans

Earlier this week, Carillion presented a revised business plan to scores of lenders - but contrary to reports, this was not expected to produce an instant agreement with them.

The developer tabled a business restructure plan on Wednesday but it is understood it failed to convince its lenders it was a strong enough proposition.

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".

A collapse could be damaging as Carillion holds government contracts in the rail industry, education sector and NHS, and employs about 43,000 people across its worldwide business.

Carillion shares plunged on reports that it has lined up an an accountancy firm as a standby administrator if crunch talks about the outsourcing company's future fall through.

Trade unions have urged ministers to step in to protect the 19,500 jobs across Britain that are now at risk.

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.

It also won a contract a year ago to extend platforms at Edinburgh's Waverley Station.

The firm is part of the consortium building the Aberdeen Western Peripheral Road (AWPR).

Projects involving Carillion in Scotland also include the electrification of the central Scotland railway line through Shotts.


EY partner Lee Watson is now on secondment to Carillion acting as a director and the firm's chief transformation officer. "It would be inappropriate for us to comment on any individual contractor's internal financial governance".

Ministers are drawing up plans to take over prisons contracts worth £200m from Carillion, .

Mick Cash, general secretary of the Rail, Maritime and Transport (RMT) union, called for protection for workers "caught in the middle of this financial meltdown at Carillion".

The opposition Labour's Party's spokeswoman on business issues, Rebecca Long-Bailey, says the collapse of Carillion "would have major implications for the outsourced government contracts the company holds, as well as the firm's thousands of workers, those in the supply chain and those who rely on Carillion's pension fund".

'The collapse of Carillion could provoke a serious crisis'.

Asked if the government could take over Carillion's public sector contracts, he replied: "Of course the government will make contingency plans for many different situations, as you'd expect".

A Government spokesperson repeated a statement given to Sky News last weekend which said it was "committed to maintaining a healthy supplier market and work closely with our key suppliers".

"We remain supportive of their ongoing discussions with their stakeholders and await future updates on their progress", she said.

Carillion has struggled since reporting half-year losses of £1.15 billion., and a meeting is being held on Friday to discuss its pensions deficit. "It would be inappropriate for us to comment on any individual contractor's internal financial governance".

The Cabinet Office insisted it would not provide a "running commentary" on Carillion.

Related News:



Most liked

Short Interest in NVIDIA Corporation (NASDAQ:NVDA) Declines By 8.1%
Qualcomm" published on January 06, 2018, Usnews.com published: "Nvidia Is Taking the Auto Industry By Storm" on January 08, 2018. Finally, Victory Capital Management Inc. increased its position in shares of NVIDIA Corporation by 543.4% in the third quarter.

President Zuma Hosts Kenyatta in Durban
The stadium is a sea of black, green and gold as crowds are quickly filling up seats ahead of ANC President Cyril Ramaphosa's speech.

Justin Holiday scores 16 points with 9 rebounds in Bulls' win
Markannen was fouled intentionally with 6.8 seconds left and he sank both free throws for the final points of the game. Williams shot 16 for 27 with a career-best eight 3-pointers and made all 10 of his free throws.

Crude Oil Prices Increased in 2017, and Brent-WTI Spread Widened
Craig at Platts, meanwhile, said gasoline demand could inch lower and it may be a matter of time before oil prices reverse course. Brent crude oil futures briefly broke back above $70 per barrel while West Texas Intermediate was trading around $64 per barrel.

Switzerland rules lobsters must be stunned before they are boiled
But there's "clear-long-term motivational change [in these experiments] that's entirely consistent with the idea of pain". In experiments, hermit crabs were quick to abandon a shell if it was exposed to a large electric shock.

Queen Elizabeth Says Wearing A Crown Has One Significant Downside
The Queen may enjoy the great privilege of wearing a crown, but the extravagant headpiece doesn't come without its downside. Meanwhile, the Smithsonian Channel is airing a special to mark the 65th anniversary of Queen Elizabeth's coronation.

Meghan Markle's Sister Samantha Grant Asks For Forgiveness, Wants Royal Wedding Invite
You go through similar things - it's a bond, and it's something you know you've tackled together and come out better for it. US President Donald Trump is not getting a wedding invite from Prince Harry and Meghan Markle .

Flu Widespread in 36 States, Deaths Reported: CDC
The health department said people should request the " quadrivalent vaccine " that protects against four strains of flu. In addition to taking the flu vaccine, other measures can reduce or prevent the spread of influenza.

Veterans to be Eligible for Expanded Mental Health Resources
Howard and Jean have been advocating for veterans on this issue since losing their son. We've had our veterans sign conformed consent so they are part of the process.

Vikas is mean to Hina
He asks her to help him win the Rs 3 lakh amount as he feels she is anyways going to be the victor and get the lump sum. Puneesh listens to her and later tells Hina that Shilpa has no emotions and that she broke her mug without any feelings.

Oprah 'Intrigued' But Not Planning Presidential Bid, Friend Says
Trump , speaking with reporters during a White House meeting today, said in response to a question: "Yeah, I'll beat Oprah ". The enthusiasm for an Oprah candidacy illustrates the range of candidates who may eventually run against Trump .

Walt Disney (DIS) Given "Sell" Rating at Pivotal Research
It dived, as 90 investors sold DIS shares while 649 reduced holdings. 95 funds opened positions while 563 raised stakes. The firm earned "Buy" rating on Friday, July 28 by Northland Capital. (NYSE:EGHT) to report earnings on January, 24.

Court rules Pennsylvania can keep congressional district map
The core issue, he said, is whether elected government is going to represent the citizenry and not a minority party seizing power. Pro-GOP groups also made extensive efforts to purge thousands of legal but inactive voters in blue epicenters.

Carrie Underwood's 'The Champion' to open Super Bowl LII
Carrie will also open NBC's Super Bowl LLI on February 4 with a music video filmed previous year for " The Champion ". Country music sensation Carrie Underwood has traded in her guitar and harmonica for a shot at becoming a pop star.

Girl should be allowed to take medical marijuana at school: suit
Traditional medicines had limited success in helping Ashley with the seizures - she would suffer one to three seizures per day. The 11-year-old student is being treated for leukemia with chemotherapy.