Carillion Plc is planning last-minute discussions with the U.K. government to stop from going into government as soon as Monday, Sky News reported, citing people it didn’t identify.
The debt-ridden builder has produced a plan which would let it borrow new financing from existing lenders if the government agrees to ensure payments at particular stages of public-sector contracts, with emergency discussions with officials scheduled for Sunday, Sky said. A Carillion spokesman declined to comment on the report, while a government spokesperson whined Saturday that officials are “carefully monitoring the situation” and working to ensure that contingency plans are strong.
A group of Carillion’s lenders are pushing for citizen help to save the debt-ridden builder after saying a business plan submitted Wednesday was “overly optimistic,” the Financial Times reported earlier, citing people with knowledge of the discussions. Carillion on Friday denied the proposal had been rejected. The builder, whose shares have plummeted after it issued three profit warnings in six months last year, employs about 43,000 people globally and gets three-quarters of its revenue in the U.K.
U.K. ministers decided against offering a direct financial bailout to Carillion and so are likely to function as “lukewarm” about the most recent rescue effort, Sky reported citing anonymous government sources. Officials and the organization’s lenders are said to have held emergency talks on Friday night, according to the broadcaster.
Carillion shares fell 37 percent in the past two days, after climbing at the onset of the week on optimism about its business program. The destiny of the builder is sensitive to the government because Carillion is a provider to several departments, with jobs that involve construction roads, hospitals and libraries, as well as the HS2 high-speed rail connection.