How did the company get into trouble?

Companies like Carillion have to keep projects on budget and keep winning new contracts. When one of those fail, problems loom.

Carilllion shocked the market in July with a massive profit warning, writing down its value by £845m, all related to key contracts. Two more profit warnings followed and the company admitted it needed cash quickly not to breach bank loan terms

At the start of 2017 shares were changing hands at 240p. This weekend they were 14p.

With debts of £900m it has been trying to arrange a £300m cash injection. However, lenders will not provide the cash without government guarantees.

What happens to the pension scheme?



Carillion has a £580m pension scheme deficit. If it collapses the government-backed Pension Protection Fund would take over the scheme, although the liability would swell, to £800m. While the Fund provides a safety net for millions of workers, there are limits on what it can pay out.

Who runs Carillion?

Chief executive Richard Howson quit after the July profit warning, with the new boss yet to start. It has been run by engineering industry veteran Keith Cochrane and the group’s chairman Philip Green, the former boss of United Utilities. Sally Morgan, who was director of government relations for Prime Minister Tony Blair, is also a director.