Construction giant Carillion is to go into liquidation, threatening thousands of jobs....
The move came after talks between the firm, its lenders and the government failed to reach a deal to save the UK's second biggest construction company.
However, the government will provide funding to maintain the public services run by Carillion.
The firm is involved in major projects like the HS2 high-speed rail line, as well as managing schools and prisons.
It is the second biggest supplier of maintenance services to Network Rail, and it maintains 50,000 homes for the Ministry of Defence.
The company has 43,000 staff worldwide - 20,000 in the UK. It is not clear yet how those staff will be affected.
Some of Carillion's contracts will be taken on by other firms and some could be renationalised.
Carillion chairman Philip Green said: "This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
"In recent days, however, we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision."
'Disastrous news'
Bernard Jenkin, the Conservative chairman of the House of Commons Public Administration Committee, said: "This really shakes public confidence in the ability of the private sector to deliver public services and infrastructure."
"There needs to be a change in the mindset of many of many of these companies... if you're actually doing a very substantial amount of business at taxpayers expense for the taxpayer, you've got to treat yourself much more as a brand of the public service not as a private company just there to enrich the shareholders and the directors."
"Ironically, Whitehall tends to do contracts with companies that it always does contracts with, because that's the safe thing to do - that's the perception. A great many small and medium-sized companies feel excluded."
Mick Cash, the general secretary of the Rail, Maritime and Transport (RMT) union, said: "This is disastrous news for the workforce and disastrous news for transport and public services in Britain.
"RMT will be demanding urgent meetings with Network Rail and the train companies today with the objective of protecting our members jobs and pensions.
"The infrastructure and support works must be immediately taken in house with the workforce protected."
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