Carillion plc is in the process of entering compulsory liquidation under the Insolvency Act 1986. “What does this mean for my company and me?”
Suppliers to Carillion or Carillion Group Companies. PLEASE BE AWARE KSA IS NOT THE SPECIAL MANAGER
It is very early days in what will be a very complex insolvency and break up. As a supplier to the company or its group companies or subsidiaries your business is likely to suffer a loss. Normally your business will be an unsecured creditor, because you are a supplier on credit to the Carillion Group. The strong likelihood is that this money will not be recovered and that a very small dividend may be returned to your company in the months and years ahead. It is best to treat this money as gone.
“What does this mean for my cashflow”?
As above the likely outcome is that you or your company will not be paid. Does this mean you will need to make layoffs redundancies and so on immediately. It is likely that a number of the contracts that were undertaken by Carillion will be picked up by joint venture partners or NEW contractors. Your subcontract status MAY mean that you will be asked to re-tender or supply the newly appointed contractor.
If that is the case, be careful, take advice from your accountants and ensure that wherever possible you obtain credit insurance before supplying services, labour and or materials.
What about the next steps if the Official Receiver wants me to work for the Special Manager?
- Try and get some point of contact at the Carillion company, PWC the liquidators / the special managers, and stick to them like glue
- Register claims
- Register ROT claims if any
- Seek immediate assurances about continued supply or future supplies of goods or services from the special manager.
- Assume historical payments will not be received/will be massively delayed
- Prepare a 12 – 16 week daily/weekly cash flow showing the impact of this –we can help with this.
Need help to pay creditors suppliers and HMRC? We can help right now. Call KSA Group on 0800 9700 539 for assistance. PLEASE BE AWARE KSA IS NOT THE SPECIAL MANAGER
“What if I have already have a time to pay arrangement with HMRC.”? Call us now we will help you assess the options and look at negotiating on your company’s behalf. Read our page on Time to Pay if you want us to help
Your company is viable but will have a cashflow crisis as a result of this failure, please look at our guides to CVA and call us
What about getting a loan from the bank to help you? Read our guide to the government back loan.