Carillion Canada says it's soldiering on despite U.K. parent's financial woes
Company says Canadian leadership team is looking at how to ensure continuity of operations
A spokesman for the Canadian subsidiary of insolvent British construction giant and state contractor Carillion says it's business as usual in Canada despite the parent company's collapse on Monday.
Cody Johnstone says that Carillion Canada is not in liquidation and its 6,000 employees in Canada continue to be paid, along with its subcontractors and suppliers.
He says the Canadian leadership team is looking at how to ensure continuity of operations after the parent company's decision to go into compulsory liquidation after weekend talks with creditors failed to get the short-term financing it needed to continue operating.
In a research note, Raymond James analyst Frederic Bastien says Carillion bought Ontario contractor Vanbots Construction about 10 years ago and won contracts to build the country's first two private-public partnership hospitals.
He says the focus in Canada now is on P3 ownerships, facilities management and other recurring activities such as road maintenance, remote workforce camp operations and power line construction and maintenance.
Bastien says Carillion's Canadian assets, which include equity positions in several hospitals — including the Centre for Addiction and Mental Health in Toronto — would be attractive for a number of large potential buyers in Canada.