Carillion

steampowered

westernpromise wrote: »

I doubt the pensions are even very good. There are almost no final salary pensions left in the private sector.

Defined contribution schemes can't be in deficit. We are talking about a final salary pension scheme here.

Thrugelmir

Mr_Curious wrote: »

Why tender for work at such silly prices to stimulate cash flow if that is only going to produce a wafer thin margin?

Construction is one of those sectors where it's impossible to tender precisely. Hence why successive Governments were happy for the private sector to shoulder the risk. The taxpayer has a fixed cost. The contractor the distinct possibilty of losing money. That's the way of business.

Glen_Clark

Report in the FT shows increasing numbers of the Carillion shareholders are small retail investors. Shares moving on to platforms like H&L, AJ Bell etc
Wheras the big winners are the Hedge funds shorting the shares - selling shares in advance before the price crashed to said small retail investors.
Some say the Tory Government created false confidence in Carillion by awarding them £billion taxpayer contracts with no due diligence - so their Tory friends in the City could make a fortune at the little man's expense by shorting the shares.
So I had a look to see how the other side are presenting it.
Daily Mail headline is about supermarket carrier bags
Wheras the Express transposes photos of Corbyn on to photos of Blair and Brown when they were creating PFI as if Corbyn had something to do with it, and neglecting to mention Corbyn voted against PFI

Lungboy

Don't forget Osborne signing deals with Carillion, then making money for Blackrock by betting on them failing.

sorcerer

PFI Is fine if it's run by a well managed business, Carillion, has been running close to the edge for a few years now. Also bear in mind nothing was stopping you from also shorting Carillion if you wanted.

Glen_Clark

Apparently Carillion still had £29million in cash when they closed the doors.
The directors must be gutted they missed the chance of trousering that.

Glen_Clark

sorcerer wrote: »

nothing was stopping you from also shorting Carillion if you wanted.

The little guys assumed the Government had done due diligence before awarding Carillion £billion taxpayer contracts. Those with inside knowlege knew different. Why do you think fund managers hire (ex) politicians?

newatc

As an aside to the main issues, it would be interesting to know if any active funds had shares in Carillion at the end.

LHW99

I understand Law Debenture had a holding, though whether that was right through to the end I can't say.

GreatApe

Awarding a contract does not mean the government gave them billions it means the government agreed terms and conditions for a contract and would likely pay for the work in phases.

I don't see what the problem is. Lots of businesses go bust every single month they just don't make the news. Is it really that much worse that one company with 20,000 workers goes bust than 100 companies with 200 workers each go bust.

Also most the jobs will be saved.
The demand for goods and services create jobs not carillion
The dinner ladies and bank cleaners aren't going to be saked just their payslips will have the employer name changed.

The real losers are the banks and share holders who will end up with a £2-3 billion loss.

The pension fund will be moved into the PPF so the pensioners are safe they just get a 10% haircut.

Small suppliers will take a hit I've been there making payment to a company on the Friday and they call in the administrators on the Monday. Extremely annoying verging on criminal but you just get on with it. Its part of running a business in the same way employee thefts and misconduct are part of most businesses reality..

Labor trying its slimy best to link this to free market capatilism.