Troubled Carillion lines up administrator amid rescue talks

Purvai Dua

Source: @Photoshot

Union says Carillion workers should be safeguarded

According to Sky news, struggling construction firm Carillion has put one of the big four accountancy firms on standby to oversee an administration as it races to secure approximately £300m of emergency funding by the end of the month.

The firm, which is one of the government’s biggest contractors, is struggling under £1.5bn of debt, including a pension shortfall of £587m.

EY and PricewaterhouseCoopers have reportedly been asked to compete for the role as administrator to the HS2 high-speed rail-link contractor in recent weeks, with EY said to have been lined up by directors.

This does not necessarily mean that EY will ‘ultimately be appointed’.

Government officials and regulators will be holding crisis talks today aimed at safeguarding the interests of more than 28,000 pension scheme members who could face cuts to retirement payments if Carillion does not survive.

The RMT said Carillion’s workers were “not responsible for the crisis”.

A Downing Street spokesman also said the Government was monitoring the unfolding situation.

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