Rescue at the 11th hour?14 Jan 2018 23:17
Possibly by the consortium of banks, but certainly cant see this being bailed out by the government as this could send out all the wrong signals to other private companies who think they may be too big to fail, plus the fact that they continued to dish out large contracts even after the troubles they were having were known which will look very bad for the government. The "too big to fail" motto i believe was outcast by the government after the subprime mortgage collapse in 2007 and the bailing out of the banks.
Will the banks rescue carillion, or just take the hit? Possibly convert the debt into equity but the current shareholders will be diluted to oblivion. Whatever happens, current shareholders are pretty much screwed, but at least the company will stay afloat. Personally however i just cant see how a deal would be reached because it is not really in the banks' best interest to.
In the case of administration, pensions and employees will be paid off first, then various secured creditors, then bondholders, then at the very bottom the shareholders.