A major British construction company is going into liquidation after failing to secure a financial lifeline. Carillion (CIOIF), which employs 43,000 people around the world, said in a statement Monday that rescue talks with stakeholders including the British government had collapsed.
"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," Carillion Chairman Philip Green said in the statement.
With thousands of workers in the UK and Canada, the construction company also builds high speed rail infrastructure, is involved in power distribution projects, and performs road maintenance, hospital management and other government services.
Carillion has hundreds of contracts with the UK government. It was reported to BBC that the government was working on a contingency plan since last year in preparation of Carillion’s failure.
Fiona Cincotta, senior market analyst at City Index, commented, “It has been more than surprising, possibly even negligent, that the U.K. government continued to dish out contracts to Carillion even though their future has looked uncertain for some time.”
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