The main unanswered questions raised by Carillion's collapse

The move comes following unsuccessful talks with potential lenders and government to try to rescue the business, which provides services to the defence, education, health and transport sectors. Its Canadian operations include maintaining housing at Canadian Forces Base Petawawa, building roads in Ontario and Alberta as well as hospitals in Toronto, North Battleford, Sask., Sault Ste.

Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: "It is vital that Carillion's small business suppliers are paid what they are owed, or some of those firms could themselves be put in jeopardy, putting even more jobs at risk besides those of Carillion's own employees".

Speaking in the House of Commons on Monday afternoon, Cabinet Office minister sought to reassure Carillion staff following the company's "regrettable" collapse.

However, when it comes to contracts in which Carillion was involved in a larger consortium with more companies, its role could be possibly taken over by the other companies. The liquidation leaves their fate up in the air and could lead to higher costs.

"The Government is also doing everything it can to minimise the impact on subcontractors and suppliers who like employees will continue to be paid through the official receiver".

"Hopefully, they will be able to work with their partners to get the working capital they need to continue to provide important services", Lewis said.

A leading trade union is set to take legal action against collapsed construction giant Carillion for failing to notify its workforce of potential job losses.


The company alerted investors a year ago that it was short of cash and would sell assets to raise money.

Carillion issued three profit warnings in the past six months. The company wrote off £800-million worth of work in July, suspended its dividend and dismissed chief executive Richard Howson.

There are also concerns for Carillion workers' pensions.

Mr Manzoni told the Public Administration and Constitutional Affairs Committee: "The Crown Rep rotated off Carillion in about the summertime this year".

Sources had told the Press Association that a business plan tabled by the group during the meeting was knocked back because it failed to present a solid proposition for restructuring the business.

Government sources have denied it was a mistake to award the contracts to Carillion, saying to have done otherwise would have worsened its problems.

The spokesman said the Government will pay the company's receivers to ensure services "continue to run as normal", while some services carried out by Carillion may end up being brought "in-house".

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