Carillion is reported to have put accountancy firm EY on standby as potential administrators if it fails to secure extra funding from its lenders.
Sky News reported that the approach is part of a contingency plan by Carillion as talks continue with bankers.
EY has been acting as an adviser on the contractor’s restructuring plans for several months.
Talks with the banks have been ongoing since Wednesday when Carillion presented its turnaround plans.
The company needs £300m of emergency funding and lenders are under pressure from the Government to keep the company afloat.
One source said: “This is not a normal restructuring – it’s very political.
“The Government knows the disastrous consequences of a Carillion collapse so is doing all it can to avoid that happening.”
Carillion currently employs around 20,000 workers in the UK.
Unite assistant general secretary Gail Cartmail, said: “The government must consider all options while the future of Carillion hangs in the balance, including bringing contracts back in-house.
“If the government is forced to institute a rescue package they need to also ensure that the supply chain is fully protected.”
from Construction Enquirer http://www.constructionenquirer.com/2018/01/12/carillion-puts-administrators-on-standby/
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