JOBS in Ayrshire could be at risk with the recent announcement of construction giant, Carillion, going into liquidation.

It is understood that the company had “no choice but to take steps to enter into compulsory liquidation with immediate effect” after talks failed to find a solution to deal with its debts on Monday, January 15.

Carillion currently employs 20,000 workers across Britain and it is believed to have worked within the Ayrshire housing sector.

The firm, which face around £900 million of debt and a £590 million pension deficit, has seen its shares price fall more than 70 per cent in the past six months after making a string of profit warnings and breaching its financial agreements.

As part of the Education 4 Ayrshire consortium, Carillion were involved in the 2007 build of six new PPP schools for £76 million – the project included the design and construction of two senior schools, being Prestwick and Belmont Academy, and three primary schools, being Alloway, Barassie and Monkton.

And in a court case dating back to 2009, the consortium took South Ayrshire Council to the Court of Session over contractual time scale issues with the removal of asbestos – the court was found in South Ayrshire Council’s favour. 

The company is reported to have sold its stake in the South Ayrshire schools project to HICL Infrastructure Company Ltd (HICL).

Being the UK’s second biggest construction firm, it is understood to have public sector partnership contracts worth £1.7 billion, including providing school dinners, cleaning and catering at NHS hospitals and maintaining 50,000 Army base homes for the Ministry of Defence.

Philip Green, Chairman of Carillion, explained: “Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.

“In recent days, however, we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.”