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Sat August 18 2018

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Carillion contracts are now all handed over

6 Aug The Insolvency Service reports that agreements to transition the last of 278 contracts provided by the Carillion group to new service providers are now in place.

This signals the end of the trading phase of the construction giant’s liquidation, which began on 15th January 2018.

The Insolvency Service says that over the past seven months it has ensured the continued provision of essential public sector services across hospitals, schools, roads, rail and other key infrastructure without any major disruption.

Since Carillion went belly up, 2,787 employees have been made redundant but 13,945 jobs (76% of the pre-liquidation workforce) have transferred to new contract providers. A further 1,272 employees have left the business during the liquidation as a result of finding new work, retirement or other reasons.

Around 240 core employees are still retained to help the Official Receiver and its special managers from PwC  close out the remaining activities.

Official Receiver Dave Chapman said: “Carillion is the largest ever trading liquidation in the UK. The continued uninterrupted delivery of essential public services since the company’s collapse in January reflects the significant effort put in by its employees, supported by my team and those employed by the special managers.

“During this period 83% of the original workforce have either transferred with the contracts 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.

“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.”

He added: “My investigation into the cause of the company’s failure, including the conduct of its directors, is also under way.”

MPU

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