Officials and pension regulators were reportedly preparing for an urgent meeting to discuss crisis-hit contractor Carillion.
Cabinet Office civil servants, and representatives from The Pensions Regulator (TPR) and Pension Protection Fund (PPF) will hold emergency talks today, Sky News reported.
Carillion, which has secured work on HS2, has a pension deficit of about £580M.
The Cabinet Office confirmed on Wednesday that there is a contingency plan in place should the construction firm – which employs about 20,000 people in the UK – collapse.
It is in regular contact with Carillion’s management team and is monitoring the situation closely. Risk mitigation factors are put in place where appropriate, it said.
PPF pays compensation to members of schemes in the event of the employer’s insolvency, or if there is not enough money in the pension scheme. TPR protects workplace pensions in the UK.
A PPF spokesperson said: “The PPF is aware of the discussions between the company, government and banks and, along with the trustees and the Pensions Regulator, will act as it always does to protect the interests of Carillion scheme members and levy payers”.
New Civil Engineer has contacted TPR for comment.
A Government spokeswoman said: “Carillion is a major supplier to the government with a number of long-term contracts.
“We are committed to maintaining a healthy supplier market and work closely with our key suppliers. The company has kept us informed of the steps it is taking to restructure the business.
“We remain supportive of their ongoing discussions with their stakeholders and await future updates on their progress.”