Advertising

Carillion latest: Sandwell super hospital not 'at risk' say health bosses

By Richard Guttridge | Sandwell | News | Published:

A new £350 million hospital currently under construction in the Black Country has not been put at risk by the crisis at building giant Carillion, health chiefs have insisted.

Midland Metropolitan Hospital

The Midland Metropolitan Hospital is due to open in Smethwick in 2019 but has already been hit by a number of delays.

The project is among a number of large contracts Carillion is working on across the country - but despite the latest dire warnings about the Wolverhampton company's future, Sandwell NHS trust bosses have said there is no chance the hospital will not be completed by the firm.

Toby Lewis, chief executive at Sandwell and West Birmingham Hospitals NHS Trust, which will run the new hospital, said: “The Midland Met is already a substantial landmark in Smethwick.

"Carillion has financial governance in place to ensure they are able to complete the build and we are confident that they will meet their obligations for the next two years, delivering a first-class acute care facility for Sandwell and West Birmingham patients for decades to come.”

Bosses at Carillion, which employs 19,500 across the UK including around 400 in Wolverhampton and 10,000 internationally, were due to meet its syndicate of lenders including Barclays, HSBC and Santander today about a potential refinancing deal which would give the business breathing space.

It has been working for weeks with advisers on closing a funding gap.

There are hopes that a rescue plan can be agreed with the banks that may include the company pulling out of some of its most unprofitable contracts and hammering out new terms on others.

There has also been speculation that the Government might be asked to step in with support for Carillion which has a £900m debt load.

Richard Guttridge

By Richard Guttridge
Chief Reporter - @RichG_star

Chief Reporter for the Express & Star, based in Wolverhampton.

Advertising

Top Stories

Advertising

More from the Express & Star

Advertising

UK & International News