Carillion Banks Lead Losers as $2.2 Billion Debts Crush Firm

Company’s major creditors include Barclays, Lloyds and RBS
Builder filed for liquidation after last-ditch talks failled

Opposition U.K. Labour Party lawmaker Jon Trickett discusses the collapse of construction company Carillion Plc.(Source: Bloomberg)

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By Tom Freke and Luca Casiraghi

January 15, 2018 at 1:15 PM UTC

Updated on

January 15, 2018 at 4:36 PM UTC

This article is for subscribers only.

Carillion Plc’s collapse under about 1.6 billion pounds ($2.2 billion) of debt will hand losses to banks, bond investors and suppliers. Shareholders of the U.K. builder and service provider will be wiped out.

More than half the borrowing is owed to banks led by a 835 million-pound loan from lenders including Barclays Plc, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc, according to a September company statement and data compiled by Bloomberg. The company also has about 630 million pounds of privately placed and convertible bonds outstanding. Its pension plan has a deficit of 587 million pounds.