CARILLION LIQUIDATION – IMPLICATIONS FOR BOARDS OF EDUCATION, ACADEMY TRUSTS, AND SCHOOLS
The liquidation of contractor Carillion announced week commencing 15th will undoubtedly impact on the education sector given the number of school construction projects, including PfI projects in which Carillion are involved up and down the country. It is of some political controversy of course at the moment that Carillion were winning public service contracts right up until it went under – although its profit warnings and then falling share price were reflecting the market’s appreciation of the financial difficulties it was in.
We are currently alerting schools and academy trusts and if you know that Carillion are involved in any aspect of your organisation we are ready to provide assistance where needed.
Government statements assuring payment for workers have yet to be tested over time but in the short-term they may help, although the prospect for workers and suppliers is not optimistic. We recommend that anyone with a ‘live’ contract with Carillion or a sub-contractor or supplier connected with Carillion should not be slow in dusting this off revisit the terms to identify what it has to say about circumstances where Carillion goes into liquidation, the options open to the other parties and the wider implications.
If you need immediate assistance, or further information please speak to your usual contact at the firm, Robert Cottingham or one of the firm’s property litigation and insolvency specialists for advice.
LBMW 18th January 2018