CARILLION COLLAPSE COSTS BANKS HUNDREDS OF MILLIONS, HITS RIVALS FOR £80M AND CAUSES BUILDING SHARES TO SLUMP : THE £4BN SHOCKWAVE - Soul 2 Soul Mates Blog

Breaking

Soul 2 Soul Mates Blog

For News, Jokes, Fashion, Lifestyles, etc

Post Top Ad

Post Top Ad

1/16/2018

CARILLION COLLAPSE COSTS BANKS HUNDREDS OF MILLIONS, HITS RIVALS FOR £80M AND CAUSES BUILDING SHARES TO SLUMP : THE £4BN SHOCKWAVE

CARILLION COLLAPSE COSTS BANKS HUNDREDS OF MILLIONS, HITS RIVALS FOR £80M AND CAUSES BUILDING SHARES TO SLUMP : THE £4BN SHOCKWAVE
Liquidation at around 7am yesterday in one of the UK's largest corporate collapses

Banks were thought to be braced for the biggest financial hit, with lenders including Barclays, HSBC, Lloyds and Santander UK looking at losses of around £2billion.
The firm's latest published debt figure is around £900million but sources said complex financing arrangements for subsidiaries means lenders could be facing losses of double that.
What will happen to Carillion pension savers? Lifeboat...
Foreign vultures circle over crippled UK aerospace engineer...
ALEX BRUMMER: KPMG under the cosh yet again after it emerges...
Pound climbs to post-Brexit high trading above $1.38 for the...
Matalan's web sales surging after shoppers flocked to its...
Six companies – Carillion Plc, Carillion Construction, Carillion Services, Planned Maintenance Engineering, Carillion Integrated Services and Carillion Services 2006 – were all placed in liquidation, with PwC appointed to support the official receiver.
PwC said there was no prospect of any return to shareholders, meaning heavy losses for those who had not cashed out amid hopes the stock could recover.
prewin Dolphin, one of the UK's largest fund managers, had about 5 per cent meaning it would have lost about £41million since the disastrous trading update in July, assuming it bought all of its shares before then.
Standard Life Investments and Kiltearn Partners, with a 4.96 per cent and 4.94 per cent stake respectively would have lost similar amount.
Overall, the top ten shareholders as of yesterday would have lost about £579million since July, not including anything they had sold since that time.
The fall-out also hammered businesses working with Carillion, with up to 30,000 estimated to be losing out on £1billion in unpaid bills.
Rudi Klein, head of Britain's Specialist Engineering Contractors' Group, estimated Carillion had left a trail of £1.2billion in unpaid bills to thousands of small sub-contractors.
He cited a Northern Irish engineering contractor owed £150,000 and a concrete frame manufacturer in north west England owed £2million.

'This can't be allowed to happen again,' he said. Carillion had about 5,000 direct small business suppliers, with fears growing last night that several could go bust in its wake.
Mike Cherry, chairman of the Federation of Small Businesses, said: 'I wrote to Carillion in July last year to express concern after hearing from members that the company was making small suppliers wait 120 days to be paid.'
Big builders were among those badly hit.

Balfour Beatty and Galliford Try were working with Carillion on the Aberdeen bypass, with Galliford saying the pair expected to have to stump up around £80m between them to finish the job.
Balfour was also working with Carillion on the A14 in Cambridge and the M62 junction 20, and said it expected its own total hit from the collapse to be up to £45m.
James Tetley, deputy head of research at broking company N + 1 Singer, said: 'People are looking at possible winners from this but in the short-term, it's a pretty grim day for the UK construction sector.'
Brian Berry, chief executive of the Federation of Master Builders, said: 'Carillion's liquidation is terrible news for all those who work for the company.'


READ MORE ON:

No comments:

Post a Comment

Post Top Ad