Carillion entered liquidation on Monday as it failed to secure a deal with lenders, putting thousands of jobs at risk.
Shares in the support services group have been suspended from trading until further notice.
Last ditch talks over the weekend failed to secure Carillion’s future as the banks said they were not prepared to lend them anymore money, effectively pulling the plug on the group who has issued six profit warnings over the past two years.
The government also decided not to bail Carillion out but instead ensured workers would be paid and the Pensions Protection Fund (PPF) said those with Carillion pensions would be protected.
“We want to reassure members of Carillion’s defined benefit pension schemes that their benefits are protected by the PPF,” said a spokesman for PPF.
Carillion employs thousands of worker’f working a broad range of projects from high speed railways to the provision of school dinners.
Chairman Philip Green said:
“This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years. Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the Board is very grateful for the huge efforts made by Keith Cochrane, our executive teamand many others who have worked tirelessly over this period. In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.”
