Construction giant Carillion has gone into liquidation. The Wolverhampton-based company said it has "no choice but to take steps to enter into compulsory liquidation with immediate effect" after talks failed to find another way to deal with the company's debts.
The government had held talks in attempt to avoid the company going into liquidation but these were unsuccessful.
The firm employs 20,000 people around the UK and has debts of £1.15 billion.
Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS.
Philip Green, chairman of Carillion, said that the government wiill be providing the necessary funding recquired to maintain the public services carried out by Carillion staff,