Carillion takes hit after rescue plan rejected by lenders

Business | Fri 12 Jan | Author – Business & Finance

Carillion shares fall on reports that lenders have rejected a rescue pan of the construction company.

Carillion is struggling with £900 million of debt and a £590 million pension deficit. Workers’ unions are being asked to step in to attempt to save the 19,500 jobs that are held at the construction firm.
Shares were down on morning trading on the London Stock Exchange. By mid-afternoon, shares were down 26.5% (5.3 points) to 14.7%. To put this into perspective, Carillion shares have lost 90% of their value since July 2017.

The key lenders of HSBC, Barclays, Santander and Royal Bank of Scotland have discussed reducing debt and restructuring the organisation’s balance sheet.

A government spokeswoman declined to comment on any specific meetings on the potential future of the company. She said: “Carillion is a major supplier to the government with a number of long-term contracts. We are committed to maintaining a healthy supplier market and work closely with our key suppliers.

“The company has kept us informed of the steps it is taking to restructure the business. We remain supportive of their ongoing discussions with their stakeholders and await future updates on their progress.”

A spokesman from Carillion declined to comment.