Regulators to hold pensions summit as Carillion crisis deepens

Chris Grayling HS2

Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS.

"We are committed to maintaining a healthy supplier market and work closely with our key suppliers".

She added: "The huge pension deficit is a further worry for the Carillion workforce, as well as their jobs being potentially on the line, they have also discovered that their pensions, which they have saved for, could be at risk".

Shares, down 90 pct since co's first profit warning in July, fall as low as 12.5 pence around noon in London.

"We remain supportive of their ongoing discussions with their stakeholders and await future updates on their progress".

Minister met to discuss the future of construction giant Carillion, amid fears the struggling firm is approaching collapse.

Carillion declined to comment on Sky News' report.

They added: "Based on our current trading assumptions (Dec' 18 EBITDA £188m with material downside risk) and our estimates of the mounting debt ( £1.1bn), likely additional supply chain funding/working capital unwind ( £300m) and pension liabilities (£600m), we now see no equity value".

Vince Cable
GETTYVince Cable was adamant that taxpayers not pay for a bailout

The general secretary of the RMT rail union, Mick Cash, said Carillion's workers were "not responsible for the crisis".

"We will not comment further unless it becomes appropriate to do so". Carillion is not expected to send a company representative.

If it survives in the short term, Carillion is also working on a plan to swap £1bn or more of its borrowings for new shares in the company, which is one of the Government's most important infrastructure delivery partners.

The PPF, which would take on responsibility for paying pensions to thousands of current and former Carillion workers if it collapses, said: "The PPF is aware of the discussions between the company, Government and banks and, along with the Trustees and the Pensions Regulator, will act as it always does to protect the interests of Carillon scheme members and levy payers".

It is the UK's second-largest construction company, employing 43,000 people globally.

Unite received assurances from Carillion after the company's share price plunge last November and was assured there was nothing to be concerned about.

"If taxpayer's money is used to fund corporate mismanagement then the Government should be looking to ensure that public sector contracts are brought back in-house at the earliest possible opportunity".

"The thousands of workers with Carillion and those in the supply chain servicing its contracts across the public sector will be desperately anxious about the future and they too need to be reassured by the Scottish Government as a matter of urgency".

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