Carillion liquidated by its creditors
This post has already been read 2987 times!
The banks have finally called time on Carillion after profit warnings throughout last year the ailing construction giant as now been put into liquidation and many contractors, companies and others in the supply chain face losing payments.
Liverpool and Birmingham hospitals who are NHS clients at two major hospital project already running over a year late face the prospect of replacing the contractor on jobs that were beset with problems.
Philip Green, Chairman of Carillion, commented saying:“This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
“Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the Board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others whohave worked tirelessly over this period.
“In recent days however 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, subcontractors and suppliers.”
Carillion were also partnered with Kier that was in joint venture with on two major smart motorway jobs, will now seek a new partner or continue on them alone.
These include the first phase of the M20 junction 3-5 scheme worth around £92m due to start in March and the £335m M6 junction 13-15 improvements.
The government also awarded Carillion the M20 junction 3-5 scheme worth around £92m due to start in March which was joint venture with contractor Eiffage and Kier, the firm had secured the HS2’s Chiltern Tunnels and Colne Valley Viaduct and the North Portal Chiltern Tunnels to Brackley packages, worth £1.3bn.
A Kier spokeswoman commented saying: “We have put in place contingency plans for each of these projects and are working closely with clients so as to achieve continuity of service.
“Following today’s announcement and after a short period of transition for these contracts, we do not expect there to be an adverse financial impact on the Group arising from these joint venture contracts.”
Many other large building contracts around the country will looked at after Carillion secured around £1.3bn worth of contracts over last year, according to information specialist Glengan.
Much of Carillions contracts are in Manchester where Carillion was working on the £75m Angel Gardens build to rent scheme for Moda and the first phase of £75m student halls for Manchester University at its Fallowfield Campus.
Carillion was also a key delivery partner on the Manchester City Airport commercial development scheme with Chinese backer Beijing Construction Engineering Group.
In Leeds, the firm was delivering the new cycleway and had just been selected to build the £115m East Leeds Orbital Route and in Birmingham it iw working on several building projects