Carillion’s Canadian business has been granted protection from creditors following the collapse of its parent firm.
The order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act provides an initial month long stay of proceedings for the Canadian business. During the month, the business intends to stabilise its operations and address liquidity challenges, it said.
It is not a bankruptcy or liquidation filing, Carillion said, and added, in a statement on its website, “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.”
In an update on 16 January, the day after its parent company announced it was in liquidation, Carillion’s Canadian division confirmed its operations would not be interrupted.
It said: “Our employees, subcontractors and suppliers in Canada continue to be paid and we remain committed to delivering safe, quality services for our clients. Our Canadian leadership is currently assessing the situation and working with stakeholders to ensure continuity of operations.”