Carillion Canada

Carillion Canada, one of Canada's largest integrated construction support services and facilities management enterprises, filed for protection under the CCAA on January 25. Based in Concord, Ontario, the company employs approximately 7,500 individuals who provide, among other things, year-round routine and preventative road maintenance services for approximately 40,000 kilometers of highways across Ontario and Alberta. On January 15, Carillion plc, Carillion Canada's UK parent company, filed for liquidation, owing approximately $2.0B (CAD) to its creditors and $27.5MM to the UK government. The liquidation filing followed failed attempts by the UK company to restructure its heavy debt load; ultimately its lenders refused to allow further draws on its £100.0MM unsecured facility and the UK government refused to provide short term funding for a restructuring. The high level of publicity associated with the UK proceedings resulted in significant pressures from suppliers, customers and stakeholders on the Canadian company regarding its status. While the company has significant business operations and assets, various factors have led to its inability to meet obligations as they become due. Prior to the commencement of the UK proceedings, normal course cash sweeps of the Canadian company's cash left it with negligible funds. This cash sweep, coupled with the company's inability to access Carillion PLC's $30.0MM (CAD) HSBC operating line, has resulted in an immediate liquidity crisis and operational challenges. Based on the company's cash flow projections, it only has cash to remain operational through the week ending February 17, during which time it will explore interim financing options as well as other options to increase short-term liquidity. EY was appointed monitor. Counsel is Blakes for the company, TGF for the monitor and Chaitons for the Board of Directors.