Carillion goes into liquidation
Construction services giant Carillion has gone into liquidation after rescue talks with the government and lenders failed over the weekend. The company had racked up more than £900m in debts and a £587m pension deficit, forcing it to sell off a number of its businesses last year. The Carillion pension scheme will be one of the largest ever taken over by the Pension Protection Fund (PPF). Carillion’s collapse will have implications throughout the UK; the company has vast reach into the NHS, education, prison services and the building of infrastructure and new homes, with key contracts including the Aberdeen bypass and a joint venture with Kier to work on the HS2 railway. 43,000 jobs have been put at risk, as well as a number of smaller suppliers and subcontractors. Theresa May has said that she is ‘resistant’ to the idea of a taxpayer funded bailout, although the government will aim to protect the vital public sector work that the company delivered. Questions have been raised as to why £2bn worth of contracts continued to be awarded to the company after it issued a first profit warning in July.