Carillion in Liquidation

[nidave]

Tj

I’m struggling to understand whether this is a statement or a question. If it’s the former, do you have any evidence to back it up?

If not, should you be making such an accusation on a public Internet forum?!

The point was made about directors having no liability and could not go to jail. I was making the point there is a situation where directors an get into a lot of trouble. Not making an accusation. I could have been clearer.

 

[KAD]

https://news.sky.com/story/stricken-hs2-contractor-carillion-in-urgent-fight-for-survival-11197537

So another rail contractor in trouble. Where has all the money gone?

The people at the top certainly didn't miss out on their slice of the pie before going under.

 

[Bromley boy]

Tj

The point was made about directors having no liability and could not go to jail. I was making the point there is a situation where directors an get into a lot of trouble. Not making an accusation. I could have been clearer.

The discussion in relation to directors was that “limited liability” refers to the liability of shareholders rather than directors.

Directors could most certainly go to jail for insider dealing, and for fraudulently trading, for that matter.

Please can you clarify your point?

 

[Abpj17]

The reality is that they directors won't be liable for the debts of the company.

Insider trading will only apply if shares changed hands, futures etc. I've not seen that suggestion anywhere.

So it comes down to whether they have failed in their duty to the company. Again, potentially unlikely given how the end played out.

There might be scope for bonus clawback etc. but as figures above, these sums aren't significant relative to the debt of the company.

 

[gazthomas]

The Directors of PLCs are under massive pressure to publish positive and improving results on a quarterly basis. This pressure of course is internal (i.e. their renumeration) but also external (such as dividend and share price). Looking at Carillion's history this was a bubble waiting to burst and that it was good fortune (for the leadership) that it didn't happen earlier.

 

[snowball]

NR press release:

https://www.networkrail.co.uk/feeds/carillions-smaller-rail-suppliers-to-be-paid-arrears/

Around 300 of Carillion Construction Ltd’s smaller rail suppliers are to be paid the arrears they are owed following a further agreement between the Official Receiver’s special manager, PwC, and Network Rail.

The agreement covers Carillion’s small rail suppliers arrears from Christmas time through to 15 January when the company went into liquidation and touches around two-thirds of Carillion’s rail supply chain.

This is in addition to last week’s announcement that all certified work after 15 January to all suppliers on rail projects will be paid until further notice and that Carillion rail employees will be paid until at least mid-April.

Matthew Steele, commercial director, said: “We recognise how challenging this period has been for our small suppliers. We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business. These small organisations are a critical part of our supply chain both now and in the future.

“PwC, together with our in-house task force and the Carillion teams, are carefully managing this difficult period to keep all our rail projects going, and are working hand-in-glove to find ways to support staff and suppliers alike.”

Ends –

Notes to editors:

• These arrears payments will start being made today and will take a number of working days to process
• Network Rail and PwC are continuing to explore and investigate arrears owed to other, bigger rail suppliers and how they can best be dealt with

The headline seems a bit optimistic. When you read the text it only covers arrears since Christmas. No doubt many subcontractors will be owed older arrears than that.

 

[DavidGrain]

This is a quote from The Business Desk an online Business Magazine

The HS2 project awarded to collapsed construction group Carillion is safe, its partner in the joint venture has said.

Fellow constructor Kier, which was JV partner alongside Carillion and Eiffage, said the two remaining partners in the venture would now deliver the contract on a 50/50 basis.

In addition, all the Carillion employees involved in the planned venture have been offered the chance to transfer to the new partnership.

In a trading update designed to reassure investors in the wake of the Carillion collapse, Kier said its infrastructure and regional building projects were all progressing as planned.

It said: “On HS2, Kier and Eiffage are now 50/50 joint venture partners delivering two of the seven civil engineering packages, lots C2 and C3. All 51 Carillion employees, including apprentices, working on the CEK HS2 joint venture have been offered the opportunity to join Kier/Eiffage with continuous service to the client being maintained.”

 

[WatcherZero]

The insolvency continues theyve appointed Price Waterhouse Coopers to find a buyer for their rail division and several facility and road maintenence contracts.

PwC has opened the bidding for firms interested in buying Carillion’s rail division along with a number of the company’s road maintenance and facilities management contracts, Construction News has learned.

https://www.constructionnews.co.uk/...ell-carillions-rail-division/10027980.article

Earlier this week they sold their National Grid maintenance arm to London based service company Murphy for an undisclosed sum and their Canadian interests to the canadian insurance company Fairfax.

Other news coming out this week is that not a single DfT official or Minister met with Carillion representatives in the past 12 months despite them being awarded contracts.

 

[twpsaesneg]

Rumour suggests that bids need to be in by 16th with the keys handed over to the successful bidder on 19th.

To be fair, I think the rail division was doing reasonably well.

 

[InOban]

Rumour suggests that bids need to be in by 16th with the keys handed over to the successful bidder on 19th.

To be fair, I think the rail division was doing reasonably well.

Which is why they they can be sold quickly.

 

[furnessvale]

Rather misleading thread title. Carillion are exiting everything!

 

[swt_passenger]

"Re-allocation of Carillion rail contracts to other firms" perhaps?

 

[Allwinter_Kit]

I wonder if, were the rail business to be sold, that would enable bids involving them to continue? I think they were one of the contenders (JV with Abellio) for South Wales Metro weren't they?

 

[pdeaves]

I was under the impression that there isn't really a 'rail division', it's all part of Carillion Construction. That makes it more complicated for any administrator/liquidator to sort out.

 

[WatcherZero]

The administrators have been collecting the contracts in to sectorial batches for quick sale and laying off bid team/admin not required by purchasers.

 

[LNW-GW Joint]

How ironic it would be if Balfour Beatty picked up Carillion contracts, having only recently fought off a takeover bid by... Carillion.

 

[Xenophon PCDGS]

I was under the impression that there isn't really a 'rail division', it's all part of Carillion Construction. That makes it more complicated for any administrator/liquidator to sort out.

Much as many on this website seem to view rail as something akin to "the Holy Grail", the body that is handling post liquidation matters will see Carillion Construction as the company body in itself as their remit.

 

[Elecman]

Not necessarily true as Construction is a basket case now, whilst the Rail work was profitable, therefore they are obliged to get the best prices possible for the various parts/ contracts to minimise the final debts

 

[DavidGrain]

An extract from The Business Desk reported today.

However, there was better news for some of the company’s former employees with the announcement that Amey had today taken over a number of rail contracts previously run by Carillion, including IP Central Panel work for East Coast mainline and Midland Main Line, Crossrail (Old Oak to Paddington Area), Plain Line Track Renewals and the North West Electrification Programme.

The deal is thought to safeguard around 700 jobs, both directly and in the wider supply chain.

Amey said the deal expanded its presence in the rail sector, where it is already one of the leading suppliers to Network Rail.