Carillion Canada gets creditor protection after failure of U.K. parent

The Canadian divisions of U.K. construction firm CarillionPLCsaid Thursday they have been granted court-ordered creditor protection following the collapse oftheir parent company earlier this month.

CarillionCanada, which employs more than 6,000 people, said the move came after its parent startedliquidationin the United Kingdom on January 15,which led to "unexpected liquidity challenges" for the Canadian operations.

The creditor protection filing was approved by the Ontario Superior Court of Justice. It coversCarillion Construction Inc., Carillion Canada Inc., Carillion Canada HoldingsInc., and Carillion Canada Finance Corp.

Carillion Canadasaid the creditor protection filing is not a bankruptcy or liquidation filing, and that it expects to continue operating under the court order.

The company's Canadianoperations include public road maintenance, the construction and maintenance of hospitals,remote workforce camp operations, and power line construction and maintenance.

CarillionCanada said it does 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 company said it will use the protection to stabilize operations, and shore up its short- and long-term liquidity situation, while also looking at its business options. The initial period of protection runs for one month but can be extended.

"I would expect that over time all of their assets are going tocome up for sale," he said. "I don't expect that Carillion Canada will re-emerge as anoperating company down the road."

Ernst & Young has been appointed as monitor in the creditor protection proceedings.