Carillion Goes into Liquidation
The announcement follows the failure of the company to reach agreement with key financial and government stakeholders over the extension of credit facilities to strengthen the group's balance sheet.
Commenting on the announcement, Carillion Chairman, Philip Green, 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 whohave 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. 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."
In a separate development, shadow Cabinet Office minister Jon Trickett has called on the government to explain why some £2bn of contracts were awarded to the group after it issued the first of two profit warnings on 10 July without the separate appointment of a “crown representative” to oversee their delivery - a requirement under current government regulations.
The UK's opposition Labour Party has also called into question Mr. Green's relationship with the government following the revelation that he has been a major donor to the Conservative party.