Construction firm Carillion has entered compulsory liquidation in a move that has put 43,000 jobs at risk across the world. It comes after the construction and facilities management giant failed to secure short-term financial support from stakeholders.
The company, employs 20,000 people in the UK and is involved in landmark infrastructure projects such as HS2 and installing smart motorways, as well as managing facilities at schools and prisons.
Its liquidation comes after talks between Carillion, its lenders and the government at the weekend failed to end in a deal to save the business.
It is sadly the case that the liquidation is unlikely to be straight forward and will probably be protracted which will in turn have a significant impact on the company’s supply chain, which is likely to comprise a large number of UK-based businesses in the construction industry and beyond.
Sub-contractors and suppliers who are owed money by Carillion are at the end of the queue for payment and it will be a considerable time before they receive any money, or even know if anything will be paid. This is likely to cause financial difficulties for many, potentially leading to knock-on insolvencies.
If you are a creditor of Carillion and non-payment will have a detrimental effect on your business and cash flow, contact PKF Francis Clark business recovery team on 0800 832 1875.
PKF Francis Clark’s business recovery experts are IACEW Licensed Insolvency Practitioners who pride themselves on providing clear practical advice in the most difficult situations. The focus is always on saving a business and for suppliers of Carillion it may be possible to ease the cash flow burden for example by helping them to agree ‘Time to Pay’ arrangements with HMRC and possibly renegotiating terms with their own suppliers, either informally, or through a formal rescue process like a Voluntary Arrangement.