Carillion has announced that it will enter compulsory liquidation with immediate effect.
This follows discussions between the group and financial and other stakeholders, including the government, regarding options to reduce debt and strengthen its balance sheet.
The group's assets will now be sold in order to meet outstanding financial liabilities - including a pension deficit which stood at £587m at the half year and net debt of around £900m at the year end. In our opinion it is unlikely that there will be any money remaining for shareholders. Trading in Carillion shares has been suspended.
Chairman Philip Green commented; "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."
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