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New rescue plan talks

Carillion to face creditors over financial woes

Keith CochraneTroubled building and services company Carillion is to meet creditors on Wednesday as it struggles to resolve its financial problems.

Carillion, which is involved in the high-speed rail link HS2 and a number of other government-backed contracts, needs to restructure its balance sheet and reduce its debt.

It also faces an investigation by the Financial Conduct Authority over “the timeliness and content” of statements made before it issued a profit warning last July, the first of three.

A spokesman said today: “The group is currently finalising its business plan, which it intends to present to its financial creditors and certain other stakeholders on Januray 10, in line with the previously announced timetable.

“Once finalised, the business plan will provide the basis for the agreement of a proposal to restore Carillion’s balance sheet.”

Sky News added that Carillion’s rescue plan would involve handing back loss-making contracts, revising the terms of others and possibly accepting government financial support if it cannot secure private funding.

Analysts have estimated the company has debt including provisions, pensions and accounts payable of about £1.5 billion while it is current valued on the stock market at £70 million.

Last month it brought forward the start date for new chief executive Andrew Davies to 22 January at which point interim CEO Keith Cochrane (pictured) will step aside.

 

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