Carillion chases debts in bid to ease fears
CARILLION has embarked on a charm offensive as it seeks to call in debts and reassure partners that billions of pounds worth of global construction projects are not threatened by its financial troubles.
The contractor has been holding emergency meetings with joint venture partners on a number of schemes in order to reassure rivals that their own futures are not endangered by Carillion’s problems.
It currently has joint ventures with companies including Kier, fund manager Dutch Infrastructure Fund and Dubai-based conglomerate Al-futtaim. Earlier this month, Carillion issued a shock profit warning, which wiped 71pc and almost £600m off its stock market value.
Meanwhile, it has been trying to mitigate the impact of its cash flow problems by seeking urgent payment on projects across the world.
The company blamed £470m of writedowns partly on losses overseas including the Msheireb project in downtown Doha. Sources close to the company said former boss Richard Howson, who recently stepped down, had been visiting the Qatari capital every month since the beginning of last year in a bid to negotiate final payments for the contract, which could amount to more than £200m.
Carillion has blamed “cash flow issues” for exacerbating its debt problems.