Carillion Canada files for creditor protection
The Canadian branch of Carillion has followed in the footsteps of its UK parent company, filing for creditor protection.
The unit stated that it was forced to seek CCAA protection following the liquidation of its parent company as it was unable to secure short term financing for its operations.
As a result, collectively, Carillion Construction Inc., Carillion Canada Inc., and Carillion Canada Holdings Inc. have all been granted an initial order from the Ontario Superior Court of Justice.
This puts the thousands of Canadian jobs in jeopardy, with 6,000 of the company’s 23,000 international employees located in Canada.
Despite this predicament, the company does not expect any disruption to be caused to the services they provide.
“It is expected to be business-as-usual for all Canadian Carillion Applicants as they continue to operate under the protection of the Initial Order,” the company stated. “The Canadian Carillion Applicants do not anticipate any disruption to the various services they provide and do not expect that this protective filing will impact the public in any way. Public safety remains our top priority, be it in the maintenance and cleaning of hospitals, the clearing of roads or any of our other activities.”
Ernst & Young has been appointed as Monitor in the CCAA proceedings.