One of the UK government’s biggest contractors has collapsed after it drowned in debts and a huge pension deficit.
Editor’s Remarks: Carillion received an order for compulsory liquidation early yesterday morning after last-minute talks with the UK’s Cabinet Office and bankers fell through over the weekend. The company has debts amounting to £900m and a pension deficit of £587m, which sealed its fate. Carillion’s troubles worsened over the summer when it announced it was turning a loss on several key contracts, which was causing its debt levels to rise. The company then wrote off £800m and cancelled its dividend, leading to a huge fall in Carillion’s share price. For many, the liquidation was a long time coming.
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