Where do Carillion’s creditors stand now?

Publications that covered this story include the Financial Times, City AM and Independent on 16 January and the Financial Times and Daily Telegraph on 17 January.
  • Many of Carillion’s creditors can expect to receive less than 1p for every £1 they are owed
  • Little to share after senior creditors take first bite of Carillion’s remaining assets

Following the announcement that Carillion has commenced a compulsory liquidation process, Peter Kubik, partner and Licensed Insolvency Practitioner in our London office, says:

“Any company affected by Carillion’s collapse should conduct a heath check to make sure they are still a viable going concern.”

“There will be a huge knock-on effect amongst smaller firms, especially as many creditors can expect to receive less than 1p for every £1 they are owed by Carillion.”

“A prescribed £600,000 will be spread extremely thinly amongst trade creditors who are owed more than £100m in total.”

“The secured creditors, which are mostly banks, are owed roughly £900m and will get first bite of the company’s remaining assets as it gets liquidated.”

“Those construction companies and sub-contractors that derived the lion’s share of their income from Carillion are facing some tough months ahead. Many of these firms may not have trade insurance either as this would have been difficult for them to obtain amid a flurry of recent profit warnings from Carillion.”

“We are already in conversation with several creditors who are owed in excess of £1m each and suggest anyone in a similar position seeks professional advice.”

If your business has been affected by the collapse of Carillion and you need professional advice, please contact Peter Kubik or fill out our contact form here.