Carillion goes into liquidation UK Governments Costly Mistake


Carillion absorbed well-known British construction companies such as Mowlem, Wimpey and Alfred McAlpine, becoming the country's second biggest construction and services business.

But Mr Lewis refused to be drawn as to whether the Government would bail out the firm.

According to its latest set of accounts, Carillion was holding over £800m in retentions payments owed to sub-contractors.

Richard Piper, head of the construction team at Yorkshire law firm Gordons, said: "There is a suspicion that Carillion was under-pricing its services to win tenders, which although successful, can ultimately impact negatively on profitability".

Construction company Carillion, which reportedly employs nearly 20,000 people in the United Kingdom and is involved in various government projects, including HS2, has gone into compulsory liquidation, the Guardian has reported.

Carillion said Monday "it had no choice but to take steps to enter into compulsory liquidation with immediate effect". "I'd also like to thank staff for continuing to do a great job during a period of uncertainty and to reassure them that the county council will ensure staff are paid".

Carillion is a huge company - one of the biggest builders in the UK.

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The government today confirmed that the Official Receiver has been appointed as liquidator along with PwC partners who have been appointed special managers.

A worker on the new Midland Metropolitan Hospital building, who wanted to only be identified as Philip, : "Everyone on the site got told: 'That's it, go home.' My company said, 'You've been laid off'". This means the government will now be forced to provide funding to maintain Carillion's public services.

Carillion said on Friday it was having "constructive discussions" with creditors, rejecting suggestions that they did not like the plan put forward by the company.

It was announced this morning that Carillion, which employs 19,500 people in the United Kingdom, would initiate insolvency proceedings. "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".

He added: "It is of course disappointing that Carillion has become insolvent, but our primary responsibility has always been to keep our essential public services running".

Carillion plc (LON:CLLN) (CLLN.L) has released an investor update today to state that the company has gone into liquidation.

"What's happening with Carillion yet again shows the perils of allowing privatisation to run rampant in our schools, our hospitals and our prisons". Around 27,000 staff are involved with Carillion's defined benefit schemes which are likely to be transferred to the Pension Protection Fund (PPF).

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