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December 18, 2017, 10:32:09 PM *
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Author Topic: CARILLION - Railway Contractor and other services provider.  (Read 657 times)
martyjon
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« on: November 23, 2017, 07:28:55 AM »

Can any member of this forum give an up to date position of this business.

I have read comments about this company on other forums such as ;-

effectively bust;

are they still solvent;

worth £120 million or so with net debt of £800 million plus:

likely to breach their banking covenants at the 31 December;

I have checked the share price of this company and note it has plunged from about 200p per share in June to under 20p yesterday.

One Carillion document I read on-line contains the following statement ;-

 'Following discussions with its principal lenders and with their support, the board has concluded that it is necessary to amend the relevant agreements to defer the test date for both its financial covenants from 31 Dec 17 to 30 Apr 2018 (based on EBITDA for the 12 months to that date), by which time it expects to be implementing its recapitalisation plan.'

Hmmm - another Monarch Huh?
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Phantom
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« Reply #1 on: November 23, 2017, 11:43:00 AM »

http://www.cityam.com/276254/carillion-canadian-backer-dumps-big-slug-shares-

One of Carillion's largest shareholders sold a big stake in the ailing contractor yesterday evening.

Canadian fund manager Letko, Brosseau & Associates sold millions of Carillion shares, reducing its interest from 4.61 per cent to 3.46 per cent a stake of 15m shares.

A regulatory announcement on the matter was made at 12.30pm today.

Shares in the Wolverhampton-headquartered firm rose sharply this morning after hitting new lows yesterday. They are currently 1.3 per cent up from yesterday's closing price.

The firm's market capitalisation is lingering around £85m, less than a tenth of its valuation at the start of the year.

Read more: From horror show to too big to fail: City reacts to Carillion meltdown

Carillion investors were dealt a fresh blow on Friday after the firm revealed it was expecting to breach banking covenants, had received a deferral on their testing from lenders and issued its third profit warning of the year.

The announcement prompted the UK government to reaffirm its support for Carillion as it seeks to resize operations.

Carillion continues to secure important contracts despite concerns about its future. On Monday it announced it had been included on a shortlist of firms selected to build new schools in the UK.

Interim boss Keith Cochrane said the announcement demonstrated "we continue to retain the confidence of key customers despite the groupís current challenges".

Letko, Brosseau & Associates has been approached for comment.
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bignosemac
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« Reply #2 on: November 23, 2017, 12:42:31 PM »

There's either a government bail out on the horizon to protect their HS2 project, a brokered takeover bid, or, most likely insolvency.

Carillon themselves talk of recapitalisation "early next year". That's if they survive that long.
They will struggle to recapitalise if banking covenants are breached.

The ice Carillon are skating on is very thin...
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Lover of trains and all things rail related. That love and enjoyment has been severely dented in recent years by FGW/GWR.
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« Reply #3 on: November 23, 2017, 07:01:28 PM »

Balfour Beatty went through something similar a few years ago ................. question is can UK PLC afford to loose such a large civil engineering company as Carillion
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Mark Carne 26 June 2015 - "The challenges of delivering myriad improvement projects while still running a railway seven days a week were simply overwhelming".
broadgage
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« Reply #4 on: November 28, 2017, 04:18:35 PM »

AFAIK, they are still just about solvent, if they were insolvent it would be a criminal offence to carry on trading.

From a more practical or common-sense point of view they are bust and in my view are unlikely to survive in the present form for long.

I doubt that any failure or insolvency would have much effect on the wider economy, the assets and contracts would be purchased or taken over by another firm.
Very sad for employees who may be thrown out of work, or engaged on less favourable terms by a competitor, and unfortunate for creditors.
But probably not of wider significance.
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"When customers say that they want a seat, they dont mean they want to sit with their knees behind their ears so that 4 more can sit down. They mean that they want an extra coach so that 74 more can sit down"
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ray951
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« Reply #5 on: November 28, 2017, 09:08:12 PM »

I don't know whether they are the main contractor but they are doing a lot of work for the Oxford area enhancements. So if they did go bust it could seriously impact that work. They would either have to retender the work or possibly an administrator could sell/transfer the contract to someone else.

Are they involved in any of the GWML electrification programme?
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broadgage
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« Reply #6 on: November 29, 2017, 02:25:59 AM »

I think that I have read, that Carillion have done or are doing some of the civil works for electrification, not the actual trackside works, but civil works for substations and the like.
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"When customers say that they want a seat, they dont mean they want to sit with their knees behind their ears so that 4 more can sit down. They mean that they want an extra coach so that 74 more can sit down"
"Capacity on intercity routes should be about number of vehicles, not compressing people"
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« Reply #7 on: November 29, 2017, 05:10:01 PM »

I think that I have read, that Carillion have done or are doing some of the civil works for electrification, not the actual trackside works, but civil works for substations and the like.

They have been doing some OLE works for Crossrail in Paddington OOC area as it tied in with their main work of altering platform 12, 13 and 14, the layout for the access to OOC depot at Kensal and around the Westbourne Park area
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Mark Carne 26 June 2015 - "The challenges of delivering myriad improvement projects while still running a railway seven days a week were simply overwhelming".
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