Carillion bankers set up £225m fund to help subcontractors

Grant Prior 1 year ago
Share

Bankers who refused to lend Carillion more cash have set up a £225m fund to help subcontractors and suppliers caught up in the contractor’s collapse.

Lloyds Banking Group has launched a £50m fund, HSBC £100m and RBS £75m.

The trio will waive fees and suspend loan repayment for firms struggling with cash flow after losing money in the wake of Carillion’s demise.

All three were major lenders to the company and are facing huge losses following its failure.

Business Secretary Greg Clark said: “I welcome this quick and positive move by banks.

“This follows my meeting with the banks yesterday where I challenged them to see what further support they could provide for SMEs affected by Carillion’s insolvency.

“It is essential that small businesses exposed are given the support they need by their lenders, and I look forward to other banks following suit.”

A government task force has also been set up to “monitor and advise on mitigating the impacts of Carillion’s liquidation on construction firms.”

It includes representatives from leading business bodies, the construction trade sector, unions, banks and government.

Clark said: “It got key people round the table to drive forward steps that we believe can give confidence to workers and the supply chain; support from banks, the ability to link workers with employment and support for apprentices.

“I am determined that collectively we will take the steps necessary to give workers and businesses the information they need at this difficult time.”

Latest news

Digger dropped down shaft at super sewer site

Two hurt as dropped digger crushes cherry picker during lifting accident
3 days ago

Bid race starts for £240m housing upgrade framework

Installers framework open to contractors of all sizes
3 days ago

Major contractors warned again over late payment work ban

Poor payers could lose out on government contracts from September
3 days ago

Cappagh buys trenchless specialist AWL

Revenue at Cappagh companies tops £100m
3 days ago

Winvic nets 935,000 sq ft M5 business park

St Modwen gives thumbs up to first three spec units at Gloucester business park
3 days ago

New consulting outfit lands first major contracts

Straightline Consulting bags deals with Mace and Ellmer
3 days ago

Sisk bags 10th Wembley Park job for Quintain

458 homes project is the final piece of the Eastern Quarter
4 days ago

Green light for £40m Little Hadham Bypass

Graham Construction in the frame for road job
4 days ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
1 year ago

Esh Group operations boss exits

John Davies leaves after nearly 30 years at Durham-based group
4 days ago

Housing association buys house builder to boost construction

Vivid buys Bargate Homes to boost its building programme
4 days ago

HS2 clocks up 9,000 jobs milestone

Thousands of jobs being supported as 250 sites now active in enabling phase
4 days ago

Winners revealed on £500m North Wales framework

Eighteen contractors secure places on North Wales Construction Partnership
4 days ago

Industry hopes rise for more flexible post-Brexit immigration rules

£30,000 salary minimum for "low-skilled" workers could be scrapped
5 days ago

Contract race underway for £500m Tottenham Hale scheme

Developer Argent Related unveils plans with construction set to start in October
5 days ago

Work starts on £1bn Ford Dagenham regeneration

Phase one of Beam Park will see 640 homes and a new railway station
4 days ago

Crossrail delay speeds-up construction above station

Mace benefits from not having to build above a live station at Bond Street
5 days ago

British Steel goes into liquidation

Official Receiver now in charge and vows to continue supplying customers
5 days ago

Facade specialist Face ceases trading

Specialist folds during major retrofit contract at Brentford student scheme
5 days ago

Crest Nicholson raids Linden Homes for new chief

Linden Homes former divisional chairman Tom Nicholson starts next week
5 days ago

Kier wins £20m Sheffield Park Hill student scheme

Flats at iconic estate will be converted into 356 student homes
6 days ago

Site inductions to contain modern slavery warnings

How to spot labour exploitation now explained alongside traditional health and safety briefing
6 days ago

Plastic road built on new housing development

Springfield Properties recycles waste plastic to help build new road
6 days ago

Galliford Try confirms 350 construction job cuts

Slimmed-down division to focus on building,water and highways
6 days ago

Dawnus went down owing supply chain more than £40m

Subcontractors left in the lurch again following latest collapse
6 days ago

Interserve benched on £1bn Welsh framework

SEWSCAP 3 deal: Details of latest winners
7 days ago

BAM Nuttall profit hits 10-year high

Operating margin back to 3% as profit tops £26m
7 days ago

Diversification shields Keltbray from demolition slowdown

Contractor looking at new markets as core commercial workloads fall
6 days ago

Robertson lures property boss from Henry Boot

Nick Harris joins from one of contractor's biggest clients
7 days ago

Esh gears up for £36m Sunderland road job

Esh mobilises to start phase 3 of city strategic corridor
7 days ago

Contractor services