Construction giant Carillion is to take steps to go into liquidation, threatening thousands of jobs.
The move came after discussions between Carillion, its lenders and the government failed to reach a deal to save the 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.
Carillion is the UK’s second largest construction company and 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, according to BBC business editor Simon Jack.
Source: BBC
