UK-based construction giant Carillion confirms liquidation
Carillion's board concluded it "had no choice but to take steps to enter [...] compulsory liquidation"
International construction and support services group, Carillion, has gone into liquidation.
The development follows a meeting held on 12 January, 2018, between Carillion, its financial stakeholders, and the UK government.
No solutions were found that the end of the meeting, which was held to find options that would help reduce Carillion's debt and strengthen the group's balance sheet.
In a statement to the London bourse, Carillion said it also asked those stakeholders for limited, short-term financial support that would allow it to continue to trade whilst longer term engagement continued.
"Despite considerable efforts, those discussions have not been successful, and the board of Carillion has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect," the missive continued.
"An application was made to the [UK] High Court for a compulsory liquidation of Carillion before opening of business today and an order has been granted to appoint the official receiver as the liquidator of Carillion."
Pricewaterhouse Coopers (PwC) is expected to be named special manager to act on behalf of the official receiver.
Commenting on the developments, Philip Green, chairman of Carillion, said: "This is a very sad day for Carillion, for our colleagues, suppliers, and [the] 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 who have worked tirelessly over this period.
"In recent days, howeve,r 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."
Green said the UK's government would provide the funding required by the official receiver to "maintain the public services carried on by Carillion staff, subcontractors, and suppliers".
The company's Middle East operation extends to key markets such as the UAE and Oman.
Al-Futtaim Carillion – the Dubai-based organisation in which Carillion owns a stake – did not offer a comment when contacted by Construction Week.