LAYTONS LLP
Carillion PLC Laytons establishes a dedicated team
Carillion | Laytons’ dedicated team
Carillion | Laytons’ dedicated team You may be aware that one of the largest quoted construction and property services companies in the UK, Carillion PLC, has been placed into liquidation. This unfortunate event will cause a great deal of disruption and financial uncertainty for employees who work in the company as well as the very considerable number of businesses who work with or supply Carillion.
Carillion and its many subsidiaries undertake projects worldwide. Carillion also source construction materials, including plant and machinery, from suppliers worldwide. The impact of the liquidation of Carillion will be very wide reaching and will cause difficulties for a great number of businesses worldwide. Carillion was very deeply involved in a number of sectors including construction and property, aviation, oil and gas, defence, retail, residential and leisure, financial services as well as undertaking numerous Government contracts.
A large number of businesses are likely to be affected. Once a business has identified it has a problem early legal advice will be essential to assist in preserving interests, where possible, and it is inevitable that, in some cases, disputes will arise. The liquidators, PWC, have published their guidance online – www.pwc.co.uk/carillion. In relation to suppliers, they have said1: ‘Unless advised otherwise, all agents, subcontractors and suppliers should continue to work and provide goods and services as normal, under their existing contracts, terms and conditions.
1
As at 16.1.18 14.30 – the liquidators’ guidance should be checked regularly for updates
laytons.com
Carillion | Laytons’ dedicated team
You will get paid for goods and services you supply from 15 January 2018. Over the coming days we will review supplier contracts and we’ll contact you concerning these soon. Goods and services you supply during the liquidation will be paid for. A letter will be sent to suppliers shortly containing further instructions. The message may help reassure some suppliers and sub-contractors but may be scant consolation for those owed substantial sums of money and whose materials are sitting on a construction site or in a warehouse ready to be incorporated into a building. Notably, it offers no reassurance of payment for goods or services supplied prior to the liquidators’ appointment. Businesses will need to carefully consider what is in their commercial best interests and review their current and future contractual obligations and any liabilities that may flow from this insolvency and the actions taken by the liquidators.
Businesses affected should:
• •
• •
• • •
review their upstream and downstream contracts and exposure; consider whether options to terminate and/or suspend the supply of goods/services are open to them and in their commercial interests; bring payment notices fully up to date; exercise caution in entering into any new obligations with the liquidator and/or purchasers of parts of the Carillion business; monitor the evolving position closely; consider whether the situation may present opportunities to purchase aspects of the Carillion business; take advice wherever there is any uncertainty as to their rights and obligations.
Businesses will require swift expert advice and we have therefore assembled a team who are ready to assist any of your clients who may be unfortunate enough to be affected by these events.
laytons.com
Key Contacts John Abbott
Russell Beard
john.abbott@laytons.com +44 (0)20 7842 8000
russell.beard@laytons.com +44 (0)20 7842 8000
Lawrence Bruce
Sven Clarke
lawrence.bruce@laytons.com +44 (0)20 7842 8000
sven.clarke@laytons.com +44 (0)161 214 1600
Andrew Gosnay
Jennie Kreser
andrew.gosnay@laytons.com +44 (0)161 214 1600
jennie.kreser@laytons.com +44 (0)20 7842 8000
Partner | Disputes
Partner | Disputes
Partner | Construction
Associate Partner | Insolvency
Partner | Banking & Finance
Partner | Pensions
Nicholas Lakeland
Partner | Employment nicholas.lakeland@laytons.com +44 (0)20 7842 8000
London
Manchester
Guildford
2 More London Riverside London SE1 2AP +44 (0)20 7842 8000 london@laytons.com
22 St. John Street Manchester M3 4EB +44 (0)161 214 1600 manchester@laytons.com
Ranger House, Walnut Tree Close Guildford GU1 4UL +44 (0)1483 407 000 guildford@laytons.com
laytons.com
Š Laytons LLP is authorised and regulated by the Solicitors Regulation Authority (SRA Nº 566807) A list of members is available for inspection at the above offices.