TORONTO — The Canadian branch of insolvent British construction giant and state contractor Carillion PLC says it has been granted protection from creditors under the Companies' Creditors Arrangement Act by an Ontario court.
In a statement on its website, Carillion Canada says its decision to seek CCAA protection was forced by the liquidation of its parent company, which gave rise to "unexpected liquidity challenges" for the Canadian operations.
It says it expects its businesses, which employ 6,000 people and include maintenance contracts in hospitals and roadways, to carry on as usual.
It says it will use the court protection to stabilize operations and examine options to restore the business. The initial protection period is for a month but it can be extended.
The company says the protection order covers Carillion Construction Inc., Carillion Canada Inc., Carillion Canada Holdings Inc., and Carillion Canada Finance Corp.