Following several days of negotiations, construction group Carillion, one of the UK Government’s most important contractors, announced that it had “no choice but to take steps to enter into compulsory liquidation with immediate effect”. The group has major contracts in the UK and, in July last year, won contracts to build the new High Speed 2 rail line, to connect London with the north of the country.
Carillion has been plagued by substantial debt as a result of a slowdown in many of its markets. For the first half of its financial year, it recorded a more than £1.4 billion (EUR 1.5 billion) loss. The company said it had made “considerable efforts” to retain financial support, including from its creditors, like RBS, Santander and HSBC, but that crisis talks had “not been successful”.
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