CONCORD, ONTARIO, January 25, 2018 - Carillion Construction Inc., Carillion Canada Inc., Carillion Canada Holdings Inc., and Carillion Canada Finance Corp. (collectively the “Canadian Carillion Applicants”) have been granted an order (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA").
Among other things, the Initial Order provides for a stay of proceedings in favour of the Canadian Carillion Applicants and certain domestic subsidiaries for an initial one month period, subject to extension thereafter as the Court deems appropriate.
The Canadian Carillion Applicants’ decision to obtain creditor protection under the CCAA was precipitated by the liquidation commenced in the United Kingdom on January 15, 2018 by the Canadian Carillion Applicants’ ultimate parent company Carillion plc and certain of its affiliates, which gave rise to unexpected liquidity challenges for the Canadian operations. The CCAA filing is not a bankruptcy or liquidation filing.
It is expected to be business-as-usual for all Canadian Carillion Applicants as they continue to operate under the protection of the Initial Order. The Canadian Carillion Applicants do not anticipate any disruption to the various services they provide and do not expect that this protective filing will impact the public in any way. Public safety remains our top priority, be it in the maintenance and cleaning of hospitals, the clearing of roads or any of our other activities.
The Carillion Applicants intend to use the protection afforded to them by the Initial Order to stabilize their operations and address their short and long term liquidity challenges while they explore the available options. Certain of Carillion’s other Canadian business units, including the Outland Entities, the Rokstad Entities, the Carillion Services Entities, and Carillion’s Public Private Partnerships, are not parties to the CCAA proceedings, but a limited stay of proceedings has been extended for their benefit to ensure the orderly continuation of their day to day operations.
Ernst & Young Inc. has been appointed as Monitor in the CCAA proceedings. The Carillion Applicants have retained Blake, Cassels & Graydon LLP as their legal advisor to assist them with this restructuring process. The Board of Directors has retained Chaitons LLP, as its independent legal advisor.