See here for essential background: http://hpanwo-hpwa.blogspot.co.uk/2018/01/carillion-collapse.html.
Carillion plc has often been described as "one of the biggest companies in the world that you've never heard of". Today everybody knows its name. The negotiations of the last few weeks have failed to come up with a rescue package and so Carillion is officially in liquidation. On the morning of January the 15th it issued an administration notice to the
stock exchange and all its asset holders have been notified. Two other companies
in the construction sector, Balfour Beatty and Galliford Try, have been given
extra cash contributions to complete the highway projects Carillion were
carrying out. The costs so far are about thirty-five million pounds. I image
the same deal will be organized for the support services it is involved in,
such as the Facilities management at NHS hospitals. Carillion employees are
still being paid. Yesterday I saw a Carillion van parked outside a student
accommodation block under construction. I have heard from an informant inside
JR Portering that their management are still on site until at least the 16th of
February; after that, nobody knows. Obviously this situation cannot last. Probably
there will be a bigger feeding frenzy as other contractors swoop down like
vultures to feed off the Carillion carcass. This is not ideal. As I suggested,
it would have been nice if the government had given smaller businesses a chance;
but this is way better than a bailout. This affair is also going to throw the
entire PFI ethos into question. Jeremy Corbyn asked Theresa May some searching
questions about the whole business at Prime Minister's Question Time. He did
not mention the fact that PFI is the brainchild of a Labour government, not the
Tories. The government has established a "Carillion task force" which
includes representatives of business, construction experts, trade unions,
financial services and the state. We will have to wait until they've been
through a tedious and lengthy process of umm-ing and ahh-ing before they
eventually publish a coherent report. Source: http://www.bbc.co.uk/news/business-42687032#.
The best analysis of the Carillion collapse has come from Ian R Crane who
explains how people were lured into buying Carillion stock options that were
not as lucrative as they pretended. In this way the entire operation was a
bubble and it has now burst and left many people who trusted advisers with their investment
totally penniless. See: https://www.youtube.com/watch?v=e4wJ6lFMc4g.
See here for more information: http://hpanwo-hpwa.blogspot.co.uk/2014/01/man-falls-to-his-death-at-jr.html.http://hpanwo-hpwa.blogspot.co.uk/2015/08/jr-porters-strike-update-2.html.