Will Carrillion mange to survive.

  Govan1x 13:14 13 Jan 2018
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After more bad news it seems Carillion is beginning to crumble.

The Government is still giving them contracts even though they are at bursting point.

Lib Dem leader said this morning it is up to shareholders and bankers to bale them out as the Government can't

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You have to ask if you were a business man would you give them any work knowing that they might not be there to finish it.

  oresome 14:50 13 Jan 2018

You have to ask if you were a business man would you give them any work knowing that they might not be there to finish it.

And if you were a shareholder, would you subscribe to a rights issue to raise capital?

Actually it's too late for that as the shares are almost valueless and most likely there will be a debt for equity swap with the banks taking ownership wiping out existing shareholders.

(That includes me nursing a five figure loss)

  oresome 15:01 13 Jan 2018

There's a saying that goes something like:

If you've a loan of £100k from the bank and are in difficulties you have a problem.

If you've a loan of £100m and are in difficulties, the bank has a problem.

  Fruit Bat /\0/\ 16:00 13 Jan 2018

Will Carrillion mange to survive- yes

Its a cash flow problem - they haven't yet been paid for work they have already completed. The banks know this and will support them until they are paid, especially on the strength of the contracts they have in place.

  bumpkin 16:21 13 Jan 2018

Very unlikely to fail in my opinion unless ruthless banks force the issue, though hardly to their benefit in the long term.

  morddwyd 17:05 13 Jan 2018

Of course they'll survive. There are too many MPs hoping to retire to a seat ob the board for them to go under!

  rickf 17:12 13 Jan 2018

If they do survive it must not be a bail out by the taxpayers.

  Govan1x 17:39 13 Jan 2018

It seems some of the big banks that have been approached have rejected letting them borrow from them.

So where would that leave them if other banks do the same.

Not sure if the Government could jump in and bail them out like they did for the Banks. But somehow I don't think that is going to be an option.

20 - 40 thousand jobs at stake so something has to be done rather quickly I would imagine, that has to be a very high wage bill that has to be paid out every week or month.

They also have a big stake in SP2 what happens if they have to pull out of that.

Even if they get all of the payments due to them would it be enough to keep them afloat.

They need some good news and quick. Not all of the bad news that they have been getting in the last year.

  qwbos 20:18 13 Jan 2018

If the AWPR is typical of their capabilities, then they don't deserve to survive. It's way over schedule, not helped by them standing down for a considerable period over winter 2016-7 due to perceived winter conditions that didn't materialise. Couple this with a contract that apparently only gets paid on completion of stages, none of which have been completed, and you have a recipe for a dish called Carillion.

  Govan1x 22:39 13 Jan 2018

Well it seems the Government is having talks all this weekend about the plight of Carillion.

The point is the banks dont seem to want to know and that only leaves the Government to bail them out.

Now the Government has been warned by some MP's that they can not use Taxpayers money to bail them out.

It has also been said that if Carillion goes bust it will also take some other firms with it that they owe payments to.

Obviously the Government want them to carry on, but you cant bail them out without baling out any other big company that goes bust in the future.

It is getting a bit desperate for Carillion and its workforce at the moment, but I am sure we will hear a lot more about the outcome in the next week or two.

  rickf 23:28 13 Jan 2018

Taxpayers' money must not become the equivalent of the bank of Mum and Dad for companies in trouble.

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