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Interserve is not the next Carillion, says United Kingdom government


A government task force has also been set up to "monitor and advise on mitigating the impacts of Carillion's liquidation on construction firms".

Lloyds' pledge may be followed by similar moves by other banks after the United Kingdom government asked banks to help firms affected by Carillion's collapse, the BBC reports.

Lloyds said its fund, which is now available, was for small businesses within Carillion's supply chain that "may now be experiencing financial difficulty".

The British government has faced criticism after it was revealed Carillion continued to win public sector contracts after issuing several profit warnings.

A spokesperson for the the Cabinet Office said the government doesn't believe any suppliers are in a comparable position to Carillion and it monitors the financial health of all of its contractors, including Interserve. "We are in regular discussions with all these companies regarding their financial position", she said.

A trio of banks yesterday launched an emergency fund worth more than £200 million to help small businesses in Carillion's supply chain.


Tussell, which runs a database of government contracts in Britain, estimates that Carillion was awarded government contracts worth 1.3 billion pounds after the company issued its first profit warning in July.

Sector peer Carillion went into forced liquidation on Monday after the heavily indebted company failed to secure a financial rescue deal from banks.

A Government official was said to have told the paper that ministers were "very worried".

Interserve has facilities management contracts with numerous government departments, including the U.K. Cabinet Office, and also cleans the London Underground rail network.

A spokesman said the banks withdrew funding from Carillion because of "viability", adding: "There are reasons the Carillion situation happened".

"The construction industry is the cornerstone of the United Kingdom economy so it's in all of our interests to do what we can to support these small companies and limit the domino effect that Carillion's demise could have".

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