Carillion crunch rescue talks to resume

From BBC - January 14, 2018

Talks will continue later to try to save the troubled construction firm Carillion amid reports it could collapse by Monday.

Its future is being discussed at high-level Whitehall meetings, the BBC understands.

The government contractor is involved in major projects such as the HS2 high-speed rail line, as well as managing schools and prisons.

Carillion has debts of 1.5bn, including a 587m pension shortfall.

It is trying to reach an agreement with creditors, but sources have said the firm has a "matter of days" as it teeters on the edge of collapse.

The consultancy EY has been put on notice in case the company falls into administration.

On Friday, reports that creditors had rejected a potential rescue plan sent Carillion's shares down by more than 28%.

In December, it convinced lenders to give it more time to repay them.

However, the company's banks, which include Santander UK, HSBC and Barclays, are understood to be reluctant to lend it any more cash.

The UK's second-largest construction company employs 43,000 people worldwide, with about 20,000 of them in the UK.


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