Carillion Shares Fall as Market Awaits News on Financing Deal

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Shares in debt-laden British building and services company Carillion Plc sank 15 percent on Thursday in the absence of news on a deal needed to shore up its finances, Reuters reported. Many observers have warned that the 200-year old company, responsible for some of Britain’s highest profile infrastructure projects, risks collapse if it does not reach a deal with lenders to restructure its finances. The company, which employs 43,000 people, said on Saturday that it would meet creditors on Wednesday and that it could recapitalise or restructure its balance sheet in other ways. By lunchtime on Thursday there was no word on the outcome of the talks. Cabinet office minister Oliver Dowden said on Wednesday that the government was making “contingency plans for all eventualities” related to Carillion which is working on the HS2 high speed rail link between London and Birmingham and helps maintain Britain’s roads, schools and hospitals. Read more.