Government talks on Carillion crisis
The Government has increased its involvement in the Carillion crisis after a series of meetings and discussions this week.
Construction giant Carillion has a market value of just £80m but has debts of around £900m and a pension shortfall of £590m.
The Wolverhampton-based group is of central importance to a number of Government departments because of key contracts with HS2, the NHS, National Grid and its facilities management of 900 schools.
At least five senior ministers met yesterday to discuss Carillion, the Financial Times has reported. It named Cabinet Office minister David Lidington, business secretary Greg Clark, transport minister Jo Johnson, chief secretary to the Treasury Liz Truss, and justice minister Rory Stewart.
Representatives from the Foreign Office, and the departments for culture, health, education and communities were also involved.
The Government discussion followed a meeting on Wednesday when Carillion presented its plans to lenders and stakeholders.
Hopes of progress on Carillion’s problems had seen its share price rise after weekend reports about Wednesday’s meetings. However the lack of a post-meeting update to the markets resulted in Carillion’s share price falling again yesterday, down 12% to close at under 20p.
Carillion employs 19,500 people in the UK as part of its 43,000-strong global workforce.
