Carillion on the brink in survival talks

Distressed construction giant Carillion was in last-ditch rescue talks with stakeholders including Whitehall yesterday in a bid to stay afloat, as industry sources said a Stock Exchange statement is highly likely today.

It comes after Carillion, buffeted by mountainous debts, a series of profit warnings and bombed-out share price, put out a statement on Friday saying it continued talks with “financial and other stakeholders” regarding its options to strengthen the group’s balance sheet.

One source close to the talks told The Scotsman yesterday: “Things are in the balance and the government is involved as the firm is one of the largest suppliers of services to the public sector.

“There is also the issue of trade creditors and suppliers amid the uncertainty. I don’t think Carillion can go much into Monday without making some sort of statement.

“This is not your typical negotiation with lenders. Those can be very protracted. By contrast, things need to move fast in this situation, certainly over the next 72 hours.”

The debt-laden firm, where Scots-born Keith Cochrane is acting chief executive, is in charge of the extension of platforms at Edinburgh Waverley station, a new £745 million Aberdeen bypass and two facility management contracts with the Ministry of Defence worth £158m, which covers 83 Scottish military sites.

Cochrane hands over the reins to new designated boss Andrew Davies, currently head of the Wates construction group, on 22 January. 0 Keith Cochrane, the acting chief executive