Carillion bankers set up £225m fund to help subcontractors

Grant Prior 11 months 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

Balfour Beatty delivers 2-3% construction margin goal

Leo Quinn hits phase two target of Build to Last turnaround plan
22 hours ago

Firms admit price-fixing of concrete drainage products

Precast firms took part in cartel for seven years
2 days ago

£300m Edgbaston mixed-use scheme advances

Phase one office project edges closer at New Garden Square regen scheme
22 hours ago

All JCB staff get £1000 Christmas bonus

Over 7,000 staff earn biggest Christmas bonus in a decade
21 hours ago

Robertson appoints Morgan Sindall director

Scott Wilson is now Robertson's business development director
2 days ago

Beeston leisure centre out to bid

Bidding starts on cinema project in £30m shops and 130 homes scheme
2 days ago

Scape MD to head Perfect Circle consortium

Victoria Bambini to lead AECOM, Pick Everard and Gleeds joint venture
2 days ago

EastEnders set rebuild soars £27m over budget

NAO slams BBC for planning failures and procurement delays
2 days ago

Spurs stadium delays continue into New Year

Man Utd match will be played at Wembley next month as contractors work through Christmas
2 days ago

Speedy buys construction training business for £9m

Plant hirer buys Glasgow-based Geason in construction training push
2 days ago

Summer start for £25m Carlisle flood defence plan

Flood defence plan to be revealed three years after storm Desmond hit
2 days ago

Amco wins Dunbar railway station upgrade

Work to start next summer on new platform and footbridge
2 days ago

Architects win post-Brexit talent deal

Designers win concessions but construction still in skills turmoil
3 days ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
8 months ago

Essex contractor collapses after posting record results

Bolt and Heeks Ltd in administratron with 55 job losses
3 days ago

Science park starts contractor hunt for £12m office scheme

Construction work up for grabs on trio of buildings near Liverpool
3 days ago

Hitachi to pull out of £14bn Anglesey nuclear power plant

Hitachi plans for Anglesey nuclear power plant now in doubt
3 days ago

M&E specialist Ameon replaces Imtech on Graham site

Subcontractor steps in to keep project on track
3 days ago

Marshalls to buy rival concrete brick maker

Marshalls to buy Edenhall for up to £17m
3 days ago

Argent gets go-ahead for major Tottenham Hale revamp

Contractor hunt to start soon with construction set to start next summer
4 days ago

Drylining boss banned for tax dodging

Insolvency Service investigators uncover huge CIS and VAT payment discrepancies
4 days ago

£2bn Elephant & Castle shopping centre scheme final go-ahead

Demolition to start after London mayor nods through vast scheme
4 days ago

Modular building specialist goes into administration

Timber accommodation pod maker Carbon Dynamic runs out of cash on major contract
4 days ago

Structural engineer crushed under scaffold tubes

Housing giant and scaffold contractor fined a total of £180,000
4 days ago

Consultant MHBC merges with Cumming

City of London based firm now part of global giant
4 days ago

Crossrail delayed again as costs rise by another £2bn

Mayor attacks previous management team who insisted project was "on time and on budget"
5 days ago

Top housing association hires Lendlease resi chief

Richard Cook will lead Clarion Group's ambitious development plans
5 days ago

UK’s tallest Premier Inn plan in Docklands

Premier Inn books in at 30-storey mixed resi and hotel scheme
4 days ago

Kier wins £45m Cambridge schools campus phase one

Northstowe education campus includes a new 1,800 pupil secondary
4 days ago

Ian Lawson to advise McLaren on growth plans

Former Severfield and Kier boss becomes consultant at expanding contractor
5 days ago

Contractor services