Carillion bosses ‘are delusional’ over bid for bail-out

OFFICIALS OF collapsed construction giant Carillion have been accused of being “delusional” over a request to the Government for financial support to help stave off liquidation.

Former executives told MPs yesterday that they believed a rescue plan drawn up last month would have been successful if the Government had matched a banking loan of £10m.

Former chief executive Keith Cochrane and ex-chairman Philip Green both said they were surprised the Government would not agree the loan. “We believed it was a logical case,” Mr Cochrane told the Public Accounts and Public Administration and Constitutional Affairs committees.

“I felt confident that we would get Government support. I am still perplexed that we did not receive it. I was very, very disappointed because for me, it was the logical, rational decision to make. We were not looking for a bailout. This was a short-term loan to help us facilitate a restructuring plan.”

Mr Green said he was optimistic that a recovery plan could succeed, right up until the company went into liquidation last month, and he expressed “deep disappointment and surprise” at the Government’s response.

“We believed passionately in the business plan. We believed it was a business capable of making cash. Liquidation was the worst outcome for all stakeholders, including the Government.”

Meg Hillier, who chairs the Public Accounts Committee, told them: “We have heard this belief that the Government should have bailed you out, or provided a loan. It seems delusional that you would assume the Government would use taxpayers’ money to prop you up.”

The collapse of Carillion has led to 1,371 job losses among exemployees since it went into liquidation last month.