Construction giant, Carillion, has gone into compulsory liquidation this week.
The government will step in with funding to ensure Carillion’s 450 public services contracts continue.
The Chairman of Carillion, Philip Green said:“This is a very sad day for Carillion, for our colleagues, suppliers and 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 haveworked tirelessly over this period.
“In recent days however 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.
“We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.”
Last week, Carillion entered emergency financing talks with its lenders and the banks but they failed to reach a survival deal over the weekend.
An application was made to the High Court for a compulsory liquidation of Carillion.
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