With news of the corporate failure of construction giant Carillion, as it files to be placed into liquidation, we look at what might happen next and how your clients connected to this could be impacted.
Despite discussions between Carillion, the Government and its financial stakeholders, it was unfortunate that no salvage deal could be reached to save the company.
With so many contracts, an estimated 20,000 UK employees and a vast number of 3rd party contractors, it is hard to see a clear route through the legal and financial mist.
What exactly happens next is anyone's guess and no doubt plans are being devised and reviewed as we write this. Certain contracts could be funded by the Government which may result in the supply chain for that work being maintained. However, what we do know is the future is going to look a lot different for all concerned including some of your clients.
The likelihood is, as a trusted advisor, you will no doubt have to field a number of queries and questions from your clients as to how this situation might affect them and what they should and could do next.
We believe that it won't be a 'one size fits all' solution as each case will be different. LCBSG's Lifecycle service offering is perfectly placed to assist any of your clients who find themselves caught up in the crossfire.
As a suggestion we can offer:-
- Proxy management for creditor claims to be lodged;
- Legal advice in relation to ongoing / terminated contracts;
- Financial facility reviews and finance raising;
- Assistance in creditor negotiations in particular HMRC and key suppliers;
- Provision of credit control services;
Should you or your clients wish to discuss any of the above then please do not hesitate to contact your local Lifecycle or LCBSG representative or call 03300 242 333 or email [email protected]