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Carillion to present revised business plan as it fights for survival

Carillion has been scrambling to secure new funding as its debt pile mounts
Carillion
Carillion has been in talks about ways to reduce its mounting debt pile

Stricken contractor Carillion PLC (LON:CLLN) is to reveal a revised business plan this week to avoid collapse following a string of profit warnings.

The services and construction company will present the plan to shareholders and lenders on Wednesday. It will form the basis of a proposal to restore Carillion’s balance sheet. The group said it was in talks about ways to reduce its mounting debt pile and securing new funding.

READ: Carillion: Where it all went wrong for the mega-cap turned micro-cap UK contractor

Carillion has debts, including pensions of about £1.5bn, according to analysts’ estimates.

The company’s lenders, including Santander UK, Barclays and HSBC, are understood to be reluctant to provide it further loans, which could force Carillion to seek government support.

Carillion is a major supplier to the government with a number of contracts, including construction of the UK’s HS2 rail project and school building programmes.

READ: FCA launches investigation into Carillion for company announcements

Last week the company said it was being investigated by the Financial Conduct Authority over the timeliness and content of its stock market announcements from July 10 to December 7 last year.

 

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