Blow to Schuldschein exuberance as Carillion staggers
In just three days this week, Carillion, the UK construction and support services group, lost 70% of its value, prompting fears of a debt-to-equity swap. This anguish comes only five months after Carillion raised €112m in the Schuldschein market, which is unused to defaults, write Silas Brown and Jon Hay.
Carillion's market capitalisation has shrivelled from £830m at the end of last week to £240m, after it declared an £845m provision against bad contracts on Monday and the departure of its chief executive Richard Howson.
The problems are so severe that unrated Carillion's ability to repay its debt
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