Construction firm involved in HS2 collapses
Posted: 15 January 2018 | Global Railway Review | No comments yet
Despite emergency discussion at the Cabinet Office, Carillion, one of around six major contractors for Network Rail, went into liquidation with very little value left in the business…
Carillion – the UK’s second biggest construction company which is involved in major projects such as the HS2 high-speed rail line – has gone into liquidation, threatening thousands of jobs.
It is reported Carillion ran into trouble after losing money on large contracts and running out of time to find a way to restructure its £1.5 billion of debt.
Carillion’s HS2 contract involved designing and building an approximate 50-mile section of the high-speed railway. It is believed that Carillion and the two other firms involved in the huge joint venture – Kier and Eiffage – had to give assurances that they could step in to deliver on the work if one of the partners collapsed. Reports suggest that the firms are still in the design phase of the deal, and detailed proposals are due to be submitted by the end of 2018.
Carillion’s Chairman Philip Green said it was a “very sad day” for the company’s workers, suppliers and customers.
A government spokesman has said: “HS2 is not at risk” and “will still be delivered.”
