Carillion Share Discussion Threads

[nigelpm] 15/1/2018 07:26

Auditors should be fine. They will have relied on management forecasts of cashflow at the interim results sign off. Hard to argue they should have qualified the accounts on a going concern basis back in September. This has gone south quickly.

[r ball] 15/1/2018 07:24

St Jude I reckon.

[bigsi2] 15/1/2018 07:23

GearsAnother company that's mismanaged and mired in debtDon't blame the hedgies Blame management

[paddyfool] 15/1/2018 07:14

Most of the jobs will remain, there will be ready buyers for the contracts. The lenders will get pasted and the shareholders wiped out. There will be a witch hunt, and rightly so, for the executives. Also......the auditors will come in for a slating, and a potential compensation lawsuit.

[gears] 15/1/2018 07:12

Which company will the hedge funds short next with all the profit?

[kirk 6] 15/1/2018 07:11

Pyu unlucky mate it was written all over though. Plenty of other opportunities to make money back

[rbonnier] 15/1/2018 07:08

Well at least everybody knows now and no longer left clinging to hope what's done is done you have to move on .

[gersemi] 15/1/2018 07:07

Gutted for all those affected by this event. Previous CLLN management should be put up against the proverbial wall

:((

[pictureframe] 15/1/2018 07:07

Sad day - people losing jobs.

[rcturner2] 15/1/2018 07:03

Liquidation. That's it shareholders all lost everything.

[kamitora] 15/1/2018 06:53

"U.K. government contractor Carillion Plc is to take steps to enter into compulsory liquidation, Bloomberg News reports."

[paddyfool] 15/1/2018 06:31

This will go into administration, and it is highly likely that it will then be sold on, without the debt to one of many likely buyers. The fuss about continuity of service is massively overplayed. There is virtually no chance that the administrators will run down the contracts. So the question is who will buy it? PE or Trade?

[syd7777] 15/1/2018 01:16

The Banks could not loan any money until February,without government guarantees.I did not expect the government to put tax payers money in, but pay up what they owe quickly on their contracts.They have used Carillion by getting the best deal possible at the expense of many of their contracts.The Brexit cost went up from suppliers with the value of the £.We need a RNS tomorrow for the city to trade or suspended,if more talks are needed,there’s a glimmer of hope.If its the fall of Carillion then expect government to fall along with it.May should have been kicked out after the election and expect many more big companies to fail without the recognition of the supply costs for big companies with the Brexit from higher costs.UKs second biggest construction company is just the beginning of a massive downturn for all industry and the footsie rally on false expectations.The value of the £ should see costs come down but the government with May is a stubborn B...c along with her cabinet.I am a life long conservative but I don’t bow to Cable.

[pyueck] 15/1/2018 00:21

BBC reporting that further round of talks between Carillion, Government and banks tomorrow.

No idea if this one will open, Sky were talking about administration in hours if banks don't agree tonight.

I suspect all will do all they can to try to find a rescue, but wrongful trading will be in directors minds. I guess if they still think there is hope they can go on, maybe till end of Monday.

Still think a deal could be reachable, the banks have little to gain from administration, beyond i guess not throwing more money in.

[hpcg] 15/1/2018 00:13

There should be no shareholders left from £2. That would be madness, but I suppose some people do not cut their losses. However I imagine the vast majority of the share count has been churned since the first profit warning. There is simply no appetite in the country to back irresponsible shareholders who failed to control the CEO because the dividend cheques kept turning up. Nor any appetite to keep the bankers bonuses in good shape. Finally the adults at those banks have got involved and have said enough is enough. That lost money is never coming back, its gone, indeed the longer Carillion is in operation the greater those losses become.

Most likely CLLN gets put into some equivalent of administration with no interruption of service and gets run down. Worst case for shareholders is that they get the opportunity to throw good money after bad.

[philanderer] 14/1/2018 23:54

Directors of Carillion were making a final rescue appeal to its lending banks on Sunday night after the Government refused to rescue the ailing construction group, taking it to the brink of collapse.

Sky News has learnt that the company's board was meeting ahead of a last-gasp plea for financial support‎ from its syndicate of lenders, without which its collapse will be confirmed within hours.


Carillion's banks were holding talks on Sunday night about the possibility of providing "tens of millions of pounds" of short-term support, according to insiders.

[dealy] 14/1/2018 23:15

Any money owed to creditors or suppliers before the administration starts is an old debt that will be paid partially 5 years from now. That in itself will cause havoc in the industry

[winston270] 14/1/2018 23:14

CC2014,

I'm not sure on LAD's for Midland Met, £50k a week doesn't sound unrealistic. I understand but cannot be 100% certain that the initial delay with construction was due to the services, I'm led to believe that there's only two companies in the UK that can undertake such projects, whether that be due to size or design I'm not sure, sorry don't know any more. Tomorrow could certainly get interesting....

There is little profit in construction these days, it has improved a little since the recession but has never bounced back to levels before the credit crunch and doubt it ever will. That's the big problem for Carillion, as it will take such a long time to get shot of the bad jobs and even once the better ones kick in, they will still be surviving trying to bring down debt/pension deficits on thin margins with little room for error. It will take a long time for Carillion to recover, something they have obviously pretty much run out. I believe my client is safe financially regardless of the outcome, I also understand that there is a bond / scheme in place that will finance the completion of the hospital.

Carillion are notorious for being poor payers typically 120 days, but I've seen reports in the recent press that Whitehall are equally as slow at paying Carillion. Maybe if the government sped up the payment of outstanding monies that might buy Carillion some breathing space to negotiate a deal with their bankers / provide the short term funding they desperately require without the Government bailing them out as such.

It's looking highly likely that shareholders will be left with nothing (again) and the shorters laughing all the way to bank. Ultimately, the blame lies with the way Carillion has been run and problems hidden, but the shorting certainly hasn't helped in destroying any value and thus removed the number of options open to Carillion to improve the balance sheet i.e. a rights issue.

[careful] 14/1/2018 22:56

Administation is not chaos.
Things will carry out as normal.
contracts will be met, wages will be paid.
The creditors who are owed money will keep things going.
Just a repossession and a change of management, that is all.

The healthy parts of the business will be sold transferred to new ownership.
Many workers will keep their jobs.
The pension scheme is a difficult problem.

[edmondj] 14/1/2018 22:27

Oh it's great fun - done it myself, sleeping in the back of the car in fell-running gear to support a Bob Graham Round attempt in the Lakes, starting from 3-4am. One of the best days of 2017:

hxxps://www.ukhillwalking.com/logbook/r/?i=147

[diku] 14/1/2018 22:17

Can the Banks takeover the running of the business so as to keep it going...Banks appoint their own people working with the Board to get a true picture..