Carillion: What happens now?
Following several days of speculation, it was announced this morning that Carillion had been placed into Compulsory Liquidation. This means that, at the moment, the Official Receiver is acting as Liquidator of the Company, however it is understood that PWC (who are currently acting as “Special Manager” to run the business in the interim) will deal with the matter going forward.
Inevitably, it is a worrying time for suppliers or sub-contractors of Carillion, especially with the limited information which is available, however we thought it prudent to provide a bit of advice for anyone who may be effected.
In due course, the Official Receiver will be writing to all creditors known to them from the company records, advising to register their claim. This may take some time, so we suggest visiting www.pwc.co.uk/carillion (a site set up specifically to deal with this matter) and also contact your usual point of contact at Carillion to register your claim with them; you should then receive correspondence from the Official Receiver in due course.
The Insolvency Service have advised employees to continue to turn up for work. This will be the case for sub-contractors who work on the Public Services contracts for Carillion as these services will now be supported by the Government.
It is the duty of the Liquidator to realise all assets of the company to then distribute to creditors. PWC have advised that they are exploring a potential sale of the business and assets in whole or in part; however, based upon the reported amount of secured debt the level of any dividend distribution to unsecured creditors is estimated to be nominal. To try and avoid the potential domino effect to your client, our Creditor Services and Business Funding departments are ready to offer free advice to your clients, should they wish to get in touch.
For those effected, our Creditor Services team are able to provide independent advice and recommendations throughout the liquidation process.
We will of course provide a more detailed update once more information is made available and matters become clearer. Should you have any queries in the meantime, please contact Jason Elliott, Head of Business Recovery on 01204 414243 or Jordan Heys, Cowgill Holloway Creditor Services on 07983 631 992, or arrange for a call-back by completing this form.
This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.
The information was correct at time of publishing but may now be out of date.