Photo by Terry Robinson via Wikimedia Commons
According to reports, Carillion, the troubled construction company, could fall into administration as soon as Monday once the government does not support a rescue plan.
Sky News reported that on Sunday, officials from the government are set to hold crunch discussions on the fate of the company. Sky News quoted a source that dubbed it as a “make-or-break weekend.”
The source stated: “Without that commitment of support from the government, administration is all but inevitable.”
Carillion is behind huge infrastructure projects of the government such as the HS2 high-speed rail. However, the company is suffering from debt amounting to £1.5bn and a pension shortfall of £587m.
Last Friday, the company dismissed reports that lenders had rejected a crucial restructuring plan, saying that it continued in “constructive discussions” with the firm’s creditors.
Yesterday, Insurance Insider also reported that trade credit insurers such as the Euler Herme have ceased writing new coverage for suppliers to Carillion, conveying a sign that the company is at risk of a collapse.
Previously, it has been reported that EY is currently on standby for an administration.
On Twitter, the chair of the Business, Energy and Industrial Strategy (Beis) select committee, Rachel Reeves, summoned the government to release an “urgent statement to Parliament to explain what it knew and when and what it plans to do now to protect jobs, investment in major projects and taxpayers’ money.”
Carillion refused to comment regarding the matter.