Infrastructure giant Carillion has seen its share price hit new lows as the UK government has admitted that it has put contingency plans in place for the contractor’s collapse.
Carillion shares fell below £0.13, bringing the firm market cap to a measly £55.8 million on reports that Ernst & Young was on standby to prepare for administration. Lee Watson, partner at Ernst & Young, is currently on secondment to Carillion.
“We, of course, make contingency plans for all eventualities. Members will know Carillion is a major supplier to the government with a number of long-term contracts. We are committed to maintaining a healthy supplier market and working closely with our key suppliers,” Cabinet Office parliamentary secretary Oliver Dowden, said.
The Rail, Maritime and Transport (RMT) union has called for protections for Carillion workers. The firm is the second largest in the UK and integral to many high profile public projects such as HS2, broadband rollout, the Royal Liverpool University Hospital, the Library of Birmingham.
Carillion is facing a £300m shortfall in funding and is currently negotiating with its banks