Monday, 15 January 2018

Banks face £2bn of losses from collapse of HS2 contractor Carillion

Lenders to Carillion, the construction giant which collapsed into liquidation on Monday, are facing losses of up to £2bn, making it one of the costliest corporate insolvencies for years.
Sky News has learnt that a complex series of financing arrangements for subsidiaries of Carillion mean that the total exposure of its banking syndicate is far higher than the £900m headline debt figure carried by the listed construction group.
Industry sources said that £2bn was "a sensible estimate" of the huge losses confronting the company's banks, following the failure of last-ditch rescue talks over the weekend.

Carillion's large syndicate of lenders includes Barclays, HSBC, Lloyds Banking Group and Santander UK, as well as a host of overseas firms.

Lenders were asked for roughly £20m to keep Carillion trading for another week, according to sources, but the absence of Government support for the company made the proposal unworkable.

The construction group's lenders are not the only creditors facing financial pain from its collapse.

SKY             News.

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