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Today is Blue Monday – claimed to be the most depressing day of the year. This is probably so for anyone involved with the Carillion companies placed in to liquidation today. It is particularly shocking that the financial position was such that administration was not considered a viable option leaving the companies’ directors with no other choice but to petition the Court to wind up the companies. Unsurprisingly due to the impact of the liquidation the Official Receiver sought the immediate appointment of PWC as special managers.
PWC have confirmed it is business as usual with all employees, agents and subcontractors being asked to continue to work as normal unless told otherwise with the promise that they will be paid for the work they do during the liquidations. Only time will tell how long that promise will last, but we expect that the ramifications of the Carillion liquidation will be far reaching and will affect a whole host of businesses in the days, weeks and months to come. Equally so it will place the spotlight back on pension deficits and the role of the PPF.
It’s a timely reminder as we start 2018 that irrespective of the size of your business partners, suppliers and customers to keep a close eye on cash and debtors.
Should you need advice regarding the effect of the Carillion liquidation on your business please contact a member of the Restructuring and Insolvency team or call us on 0113 849 4000.