Collapse of U.K. Construction Giant Rattles the Government
- 6 years ago
Collapse of U.K. Construction Giant Rattles the Government
Staff that are engaged on public sector contracts still have important work to do." Given
that Carillion has a yawning pension deficit, huge debt and contracts with overly narrow margins, the company had little collateral for raising money and was probably unable to find a buyer and was therefore forced to liquidate, said Mr. Colley of Warwick Business School.
The spectacular collapse of what some call a "parastatal" company
that has essentially helped the government run day-to-day operations — even managing school lunches and prisons — is raising questions about prominent contracts that continued to be awarded despite obvious red flags and warnings of lower-than-expected profits that began in earnest last summer.
More broadly, the company’s failure encapsulates a long-brewing debate in Britain over whether outsourcing public services to private enterprises is as effective as it has often been touted,
and whether some contractors, like certain banks, have become too big to fail.
th lenders and the government over the weekend, "those discussions have not been successful." The board of Carillion, it said, "has therefore concluded
that it had no choice but to take steps to enter into compulsory liquidation with immediate effect." Please verify you’re not a robot by clicking the box. that Carillion said Monday that despite last-minute talks wi
15, 2018
LONDON — The British government scrambled Monday to contain the damage as the country’s second largest construction firm
was forced into liquidation after losing money on a series of contracts and racking up around $1.35 billion in debt.
Staff that are engaged on public sector contracts still have important work to do." Given
that Carillion has a yawning pension deficit, huge debt and contracts with overly narrow margins, the company had little collateral for raising money and was probably unable to find a buyer and was therefore forced to liquidate, said Mr. Colley of Warwick Business School.
The spectacular collapse of what some call a "parastatal" company
that has essentially helped the government run day-to-day operations — even managing school lunches and prisons — is raising questions about prominent contracts that continued to be awarded despite obvious red flags and warnings of lower-than-expected profits that began in earnest last summer.
More broadly, the company’s failure encapsulates a long-brewing debate in Britain over whether outsourcing public services to private enterprises is as effective as it has often been touted,
and whether some contractors, like certain banks, have become too big to fail.
th lenders and the government over the weekend, "those discussions have not been successful." The board of Carillion, it said, "has therefore concluded
that it had no choice but to take steps to enter into compulsory liquidation with immediate effect." Please verify you’re not a robot by clicking the box. that Carillion said Monday that despite last-minute talks wi
15, 2018
LONDON — The British government scrambled Monday to contain the damage as the country’s second largest construction firm
was forced into liquidation after losing money on a series of contracts and racking up around $1.35 billion in debt.