Good morning folks,

Looks like it has been another interesting morning for updates.

I'm looking at the following:

This list is provisional. I'll see how things are going as the morning/afternoon progresses!

Also, Paul has written an article discussing how MiFID II has affected him. It's available here:

Cheers!

Graham



Carillion (LON:CLLN)

  • Share price: Suspended.

Compulsory Liquidation of Carillion

Putting this here as a full stop for the story, which has reached its conclusion as far as shareholders in the construction support services group are concerned. It had about £900 million in financial debt through 2017, plus a £700 million pension deficit.

Late on Friday evening, an RNS informed us that the company was "in constructive dialogue in relation to additional short term financing while the longer term discussions are continuing".

It was completely out of cash, and needed new funds just to keep the lights on.

The lenders weren't willing to provide such funds, and the gap was too large to be plugged by fresh equity. So as of this morning, the shares are suspended.

Honestly, I'm a little surprised that the end came as abruptly as it did. It looked like there was going to be a conversion from debt to equity, along with a fundraising, so that existing shareholders were reduced to a token percentage holding.

Instead, existing shareholders will be reduced to zero, and the company will cease to exist in its current form. Employees, creditors and customers (including the Government) will need to figure out what happens next for them. The Construction Enquirer (external link) reports that work has temporarily stopped on "scores" of Carillion's former projects.

Pensioners will move to the Pension Protection Fund, meanwhile, which looks like it will be able to take care of most of their entitlements, particularly for those who have…

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