Carillion enters end of liquidation trading phase

Blog Insolvency

More than four in five Carillion workers have now been transferred to new contracts in what has been the largest liquidation in UK corporate history.

In a new report, the Insolvency Service said the figures “signal the end of the trading phase of the liquidation”.

The construction giant fell into liquidation earlier this year with debts of around £1.5 billion, putting thousands of jobs and subcontractors at risk.

The liquidation trading period began on 15 January 2018, with insolvency practitioners working around the clock to save jobs and ensure the continued provision of public sector services, with many of the firm’s contracts relating to hospitals, schools, roads and rail.

Dave Chapman, the Official Receiver, said 83 per cent of the original workforce have now either been transferred with the contract or resigned with another job to go to.

“Staff have been very professional throughout the liquidation and I want to thank them for their support as we worked to find new suppliers,” he said.

“The focus of the liquidation will now shift to the provision of limited transitional services for some supplier and finalising Carillion’s trading accounts to ensure that payment is made to suppliers who have provided goods and services to the various liquidations. Suppliers are asked to ensure they supply their final accounts as soon as possible.”

Mr Chapman’s remarks follow a recent report which shows that as many as 30,000 firms will be affected by late payments and cancelled contracts.