Carillion will meet with the government and the Pensions Regulator today to discuss its pension scheme, which has a deficit of close to £590m.
The contractor, which is contracted to build a part of HS2, has struggled over the past year with net debt soaring from £291m to £571 between the first half of 2016 and the first half of 2017.
Its share price has fallen from 200p per share last June to less than 20p at the time of writing, with its market capitalisation falling to just £85m.
In November, Carillion asked it stakeholders to defer the test date of its financial covenants from 31 December 2017 to 30 April 2018.
After Carillion received “all necessary consents” to defer its financial commitments on 22 December, it said it is “continuing constructive discussions” around options to reduce its debt and recapitalise or restructure its balance sheet.
No announcements have yet been made about Carllion’s future.
Read our article on what to do if a contractor fails.
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