The largest construction company Carillion is under the weight of a £1.5bn debt pile. Despite discussions between lenders and the government no deal was reached to save the company.
Because of the amount of government contracts the company holds such as building hospitals, managing schools, as well as the employment of 20,000 employs within the UK and 43,000 staff world wide(countries such as; Canada, middle east and the caribbean).
As Carillion is one of the largest private sector companies, it has worked on Battersea power station redevelopment, and a supplier of maintenance services to the Network Rail. Therefore, as the company collapses, the services they provide will also cause the maintenance and servicing of these other companies to drop severely making it unsafe for others.
Due to the above statistics, it shows the amount of debt owing and how it has increases over the years as well as it gives a visual representation of how much their share price has plummeted.
The reason as to why it is said this will cause "massive disruption" is because of the damage it will cause to the public sector as well as the thousands of jobs that will be lost and causing person to be jobless and now having to look for other ways to survive in this already harsh economy.
The opinions of outsiders on the matter is that: "Carillion look like it's trying to bail out a supertanker with a soup spoon. Despite the group's best effort debt is continuing to climb, and at an increasing rate, while the construction business seems to be hitting one hurdle after another".
In my opinion the business should make all its staff redundant and make itself insolvent, or sell its most valuable assets to make up as much money as it can for the sake of its staff.
The news source is BBC News, which has a very right wing and political outlook on stories, and typically reports these kind of things.
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