Carillion - Construction giant goes bust: the potential implications
The compulsory liquidation of the UK’s second largest construction firm sent shockwaves across the UK economy and has prompted the Government and ‘The Insolvency Service’ to step in to preserve what they can so there is less of a fall out for all those who will be affected, which include Carillion’s employees, investors, lenders and it’s clients.
The developing story includes some good news for its employees as 90% of the companies who employed Carillion have decided to continue with their contracts, which means the over 8,000 UK staff who were at risk of losing their livelihoods can breath easy for the moment. The remaining 10% are yet to come to an agreement, making things uncertain for the employees involved with those particular contracts.
Similarly, the Government and various lenders are working closely with SME’s in their supply chain that may be affected and in need of assistance. However, there are a number of potential problems businesses could face should they be affected either directly or indirectly by the fallout.
Our industry experts can provide advice on a number of issues, including:
- Contracts and agreements – identifying the correct parties and advising on obligations
- ROT clauses – can you repossess your goods?
- Submission of proof of debt forms – is there any action you can take other than just registering your claim?
- Performance bonds/insurance
We can advise you or your clients on how to mitigate any potential losses and discuss all the available options with the aim of maximising any potential recoveries. For further information please contact Georgina Eason, Partner, or send us an online enquiry.