Carillion crisis deepens after reports construction firm's lenders rejected rescue plan

Carillion has been awarded key contracts related to Expo 2020 in Dubai. Phil Noble  Reuters

Shares dived this lunchtime to as little as 12.97p - valuing the company at just £55.8m - after it was reported EY had been selected by Carillion's directors to be on standby for an administration.

"Handing Carillion bosses a blank cheque bail out is completely unacceptable - company bosses should not be rewarded for failure with public money", it said in a statement.

A spokeswoman said: "It is too early to predict the outcome of these discussions but Carillion expects that any such agreement is likely to involve the raising of new capital and the conversion of existing financial indebtedness to equity which would result in significant dilution to existing shareholders".

The meeting comes as Carillion - a major government contractor on projects including High Speed 2 - races to secure additional funding to avoid collapse, with around 19,500 United Kingdom jobs at risk.

The government will meet Carillion and the Pensions Regulator on Friday to discuss the services and construction company's deficit.

But it is perhaps best known for being one the largest suppliers of services to the public sector.

Adding to the pressure on the small cap firm - which issued three profit warnings in less than six months a year ago and has seen its market value collapse by 90% - was a recommendation from broker Peel Hunt to sell the stock ahead of forthcoming newsflow.

Carillion now employs around 20,000 workers in the UK.

As well as involvement in the £56bn High Speed 2 rail project, Carillion - which has bases in High Blantyre and Leith - holds key contracts in Scotland.

A spokeswoman for Carillion said they met with creditors on Wednesday but would not comment on reports of further talks.

Didi buys 99 Taxis, igniting fight with Uber in Latin America
Chinese e-taxi giant Didi Chuxing has confirmed earlier reports that it's acquiring leading Brazilian ride-hailing company 99. Didi, the world's biggest ride-hailing company, has a history of battling Uber, forcing it to pull out of China.

North and South Korea talks result of my 'tough stance': Donald Trump
Seoul agreed to send a five-member delegation to the truce village of Panmunjom, just north of the two foes' de facto border. Chang said the Winter Olympics in Pyeongchang should be successful as the event is an important festival for Koreans.

Murkowski: Trump comments "don't reflect who we are as a country"
The government of Haiti said in a statement it was "deeply shocked and outraged" by Trump's remark - and called it "racist". White House aides were demoralized on Thursday night, watching the word "shithole" slink across the cable news chyrons.

"Carillion is a major supplier to the government with a number of long-term contracts".

But lenders effectively rejected a rescue proposal tabled by Carillion on Friday because it failed to present a "solid proposition" for restructuring the business, the Press Association reported.

Scottish Labour's shadow economy secretary Jackie Baillie called on the Scottish Government to clarify the potential impact if Carillion collapses.

The Financial Times broke the story that Carillion met Thursday with Business Secretary Greg Clark, new Justice Minister Rory Stewart, new Transport Minister Jo Johnson and Liz Truss, Chief Secretary to the Treasury, in a meeting convened by Cabinet Office minister David Lidington, BBC News reports. "We are committed to maintaining a healthy supplier market and work closely with our key suppliers", she said.

In addition to its rail operations, Carillion also manages almost 900 schools, provides services to the NHS and works with National Grid.

The firm's share price has plunged by more than 90% over the past year.

A government spokesperson said: "We can confirm that a ministerial meeting took place yesterday, 11 January".

A spokesman for The Pensions Regulator said: "We have been and remain closely involved in discussions with Carillion and the trustees of the pension schemes as this situation has unfolded".

"We will not comment further unless it becomes appropriate to do so".

Related:

  • London Family Could Derail New £1 Billion Stamford Bridge

    London Family Could Derail New £1 Billion Stamford Bridge

    The Crosthwaite family live in a cottage right on the outskirts of Stamford Bridge and have been doing so for 50 years. A three-bedroom property on the same street as the Crosthwaites sold for £1.18m previous year .

    Could The Vikings Be Set To Win Their First Ever Super Bowl?

    Mariota was consistently on the big stage in college, and he looked prepared for the intensity that came with postseason play. The Wentz-less Birds will have a tough task this Saturday, as the Falcons are one of the hottest teams around the league.

    QUALCOMM, Inc. (QCOM) Shares Bought by Xact Kapitalforvaltning AB

    Fred Cummings decreased its stake in Comerica Inc (CMA) by 15.16% based on its latest 2017Q3 regulatory filing with the SEC. New Jersey-based Supplemental Annuity Collective Trust Of Nj has invested 0.51% in QUALCOMM Incorporated (NASDAQ: QCOM ).
  • More claim sexual inappropriateness against James Franco

    More claim sexual inappropriateness against James Franco

    While chatting in the the auto , Franco surprised her by suddenly taking his penis out, she said, and putting her hand on it. Hilary Dusome and Natalie Chmiel , former students of Franco's at Playhouse West in North Hollywood, told the L.A.
    Meryl Streep Got Medical Marijuana For Christmas

    Meryl Streep Got Medical Marijuana For Christmas

    Tom Hanks is Executive Editor Ben Bradlee who holds his ground when Mrs Graham tries to intervene in the nitty gritty of coverage. Just after the New York Times did an expose on the study, McNamara sort of leans on Graham to not do the story in her paper.
    The Lakers Just Won Their 3rd Straight

    The Lakers Just Won Their 3rd Straight

    This has been the case for the majority of the team's injuries to its starting point guard, shooting guard and small forward. Next, the Lakers take their winning streak on the road for a three-game road trip to Dallas, Memphis and Oklahoma City.
  • Alibaba Group Holding Ltd (BABA) Shares Bought by Private Asset Management Inc

    The current 50-day Moving Average is 181.27, the 200-day Moving Average is 155.95, and the 7-day is noted at 189.30. Standpoint Research initiated Alibaba Group Holding Limited (NYSE: BABA ) on Monday, August 24 with "Buy" rating.
    Rory McIlroy reveals heart 'irregularity' stemming from 2016 virus in China

    Rory McIlroy reveals heart 'irregularity' stemming from 2016 virus in China

    It is what will be driving the four-time Major victor when he kick starts his 11th season in the pay-for-pay ranks. He says doctors told him it was caused by a viral infection he suffered in China 18 months ago.
    Trump lashes out at 'Sneaky Dianne Feinstein' for releasing transcript

    Trump lashes out at 'Sneaky Dianne Feinstein' for releasing transcript

    The material wasn't classified, and Feinstein said Wednesday that she didn't do anything illegal. Mr Simpson has denied that the dossier prompted the FBI's initial investigations.
  • Supreme Court to hear online sales tax case

    Supreme Court to hear online sales tax case

    Perez , which claim that Texas' congressional and state legislative districts were drawn to dilute Hispanic voters' influence. The case is expected to draw a long list of supporters and opponents of South Dakota's challenge.
    GSA Capital Partners LLP Purchases Shares of 10638 First Solar, Inc. (FSLR)

    GSA Capital Partners LLP Purchases Shares of 10638 First Solar, Inc. (FSLR)

    The Company also develops, designs, constructs and sells PV solar power systems that primarily use the modules it manufactures. Following the transaction, the chief operating officer now owns 10,424 shares of the company's stock, valued at $707,059.92.
    Lindsey Graham Says He 'Said His Peace' to the President on Immigration

    Lindsey Graham Says He 'Said His Peace' to the President on Immigration

    The Washington Post reported on Thursday that the president made the remarks during an Oval Office meeting on immigration reform. " Trump said on Twitter Friday that his language during the meeting was " tough ", but "this was not the language used".

Comments

Latest news

Meghan Markle's Family Drama Escalates Just in Time for the Royal Wedding
She said, "I'd be lying to say that I wouldn't be hurt if I didn't get an invite but that's really up to her". Samantha, who now lives in Florida, says the last time she spoke to Meghan was in 2014.

Bannon to Appear Before House Committee for Russia Probe
The path of the Senate Judiciary Committee is uncertain as Feinstein and Grassley have disagreed on the focus of the probe. Republicans have indicated they want to wrap up the investigation in the first part of 2018. "Those Democrats, Sen.

Winfrey highlights story of black woman raped by white men
It was very important for her because it would be the first time people heard from her in any detail about the Me Too movement . King, who attended the awards ceremony alongside Winfrey and Graham , said being in the room was 'electrifying'.

Saudi women to enter stadiums for first time to watch soccer
The kingdom has also announced that starting in June women will be allowed to drive, lifting the world's only ban on female drivers.

Investors Buy UnitedHealth Group (UNH) on Weakness
It is negative, as 46 investors sold MRK shares while 619 reduced holdings. 118 funds opened positions while 525 raised stakes. ValuEngine lowered UnitedHealth Group from a "buy" rating to a "hold" rating in a research report on Thursday, December 7th.

Former Klan Leader Dies In Prison
Chaney, Schwerner and Goodman were shot on a rural road near Killen's home and then buried 15 feet deep in an earthen dam. The jury was unable to agree on a verdict for Killen with the hold-out juror saying she could never convict a preacher.

Carrie Underwood and Ludacris score a touchdown with Super Bowl song
Following a brief teaser during an National Football League playoffs commercial last weekend (Jan. 7), Carrie Underwood shared a new anthemic jam " The Champion ", which features rap veteran Ludacris .

Donald Trump's Attorney Sues Buzzfeed Over Russian 'Dossier'
He defended BuzzFeed's decision to publish the dossier , despite having not verified the accuracy of its contents. After he won the election, Fusion GPS allowed the dossier to fall into BuzzFeed's hands, the suit says.

Quarterback position at MSU, Alabama will be worth watching — Smith on Sports
Tagovailoa started the second half after Nick Saban rolled the dice with starting quarterback Jalen Hurts struggling. There also will be a quarterback competition come spring practice, but that's for discussion at a later date.

AG: Girl can use medical marijuana at school
For months past year , Ashley had to use a wheelchair after hitting her head during a particularly bad seizure. Her parents say it treats the epilepsy she developed after undergoing chemotherapy for leukemia.

Brokerages Set NXP Semiconductors NV (NXPI) PT at $111.87
NXP Semiconductors accounts for 3.9% of Lathrop Investment Management Corp's holdings, making the stock its 12th largest position. Claus Moller increased its stake in Broadsoft Inc (BSFT) by 59.11% based on its latest 2017Q3 regulatory filing with the SEC.

Google Assistant coming to smart displays, Lenovo already announces one
The QC 35 II headphones became the first headphones to incorporate Google Assistant when Bose Corp. launched them in September. Available in two size options of 8- and 10-inches, the two Lenovo smart displays share the same basic specification.

SWEET: Immigration talks continue after Trump's head-spinning meeting
Commenting on the White House meeting , Graham said on Friday that diversity had always been the United States' strength. His administration is expected to challenge the decision while Congress negotiates a bill for the Dreamers.

Bill Cosby talks #MeToo movement during dinner in Philadelphia
After shaking a reporter's hand, Cosby said "Please, don't put me on MeToo", according to The Philadelphia Inquirer . In June, a mistrial was declared in Cosby's alleged 2004 rape of Andrea Constand .

Sacramento Sam's Club is one of dozens closing across US
He told a News-Miner reporter at the Sam's location that there were no major problems, just a "handful" of vehicle crashes. The restructuring comes the day after Walmart announced it will raise its starting hourly wages to $11.

Other news