David Birne, insolvency partner at chartered accountants H W Fisher & Company said in a statement that it is extremely unusual for a company of Carillion’s size to opt for liquidation rather than administration.
“It suggests there is little, if anything, of value within the company to be saved. Almost every big insolvency in recent years has been a move towards administration rather than liquidation,” he said “For Carillion’s 43,000 global staff, liquidation means the immediate risk of redundancy.”
Creditors and the UK government refused to bail out the company struggling under the weight of more than £1.5 billion (US$2.1 billion) of debt.-AP
