British construction company Carillion collapses

British construction and services company Carillion collapsed on Monday when its lenders refused to provide any further financial support.

The company, which employs 43,000 people to provide services in defence, education, health and transport, said the government would provide the necessary funding to maintain the public services carried out by its staff.

Carillion is understood to be taking steps to enter into compulsory liquidation with immediate effect. An application was made to the High Court for compulsory liquidation before opening of business on Monday.

The debt-laden company employs 43,000, and works on a variety of projects from hospitals to the HS2 high-speed rail project.

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Company executives held talks with the government and other stakeholders on the weekend in a bid to raise new funds.

Carillion’s struggles pose a conundrum for Prime Minister Theresa May over whether to use public money to assist a private company, or allow it to founder, putting public services and infrastructure projects nationwide in danger.

Reuters/Bloomberg