Elecman
Established Member
I thought that the government through HS2 had the contracts worded in such a way that the othervJV partners agreed to carry on minus Carillion if it went bust so HS2 is safe
I thought that the government through HS2 had the contracts worded in such a way that the othervJV partners agreed to carry on minus Carillion if it went bust so HS2 is safe
Speaking on Radio 4's Today, Aylesbury MP David Lidington said: "This is a private sector company, it's regrettable it hasn't been able to find a suitable refinancing option with its lenders. We did decide that taxpayers cant be expected to bail out a private sector company especially when their troubles, for the most part, arose from a side of their business that's nothing to do with UK government contracts.
"Ever since the profit warnings were announced during the course of last year, the various government departments that have had business with Carillion have been drawing up contingency plans about how they might respond.
"In the event that there was a crisis like that which we are seeing, we hoped they would be successful with their bankers and their other creditors in the way they assured us they were confident they would be. The contracts that were awarded by some government agencies and departments after July last year, you will see those are joint venture arrangements.
"Projects like HS2 have other joint venture partners where the contract was written in such a way that those other partners have to come in and they have to take up responsibilities."
Yes, one of my friends worked at Carillion head office until a few weeks ago. The other two partners were aware of potential issues and had already said they would guarantee the continuation of the HS2 stuff.I thought that the government through HS2 had the contracts worded in such a way that the othervJV partners agreed to carry on minus Carillion if it went bust so HS2 is safe
Yeah I thought that- different people of course.Lightning does strike twice:
BHS....Philip Green was chairman
Carillion....Philip Green, chairman.
Coincidence of names or what!
Compulsory liquidation too. As bad as it gets.No multiple locations are quoting liquidation.
With a Labour peer being a director?Now being reported by BBC & ITV. The political mudslinging has already begun with some labour person on BBC putting the boot in.
So who made the decision to pay out a dividend then?Upto £900million in debt
With a Labour peer being a director?
Nothing to do with a Labour peer being a director?In land of my fathers where Abeilio were using Carillion as their construction partner for their bid for the South Wales Metro -
" I asked the WG to explain whether and how Abellio can remain in the franchise contest, but they said they don’t comment on procurement processes"
One suspects theirs a lot of flapping about at Transport for Wales given Abeilio were in many peoples eyes "favorite" given their bid teams links with Welsh Labour.
She could have warned Labour run Leeds city council who awarded them a £14m contract last week.Baroness Morgan is on the audit and renumeration committees. So she should have been very aware of the financial situation and helped decide how much her fellow Directors were paid.
You could probably find all that online Paul.
Seeing that some people on the website apparently have deep inside knowledge of the Carillion organisation, I thought it would be fair to ask the question that I did upon this thread, as they could give a reply with personal insight.
As this is a liquidation, as a supplier you will not receive any of the money you are owed (for some considerable time at least). The liquidation creditors' dividend payment will only be a proportion of the debt owing to you and probably only a small proportion at that as employees wages up to today, taxes outstanding such as VAT, PAYE and NI, and bank loans are all paid first.if you are a supplier to Carillion and are already owed significant sums for previous work. Do you continue to supply, or stop and stem your possible losses?
It doesn't really matter *that* much.
All they do is assemble and orchestrate a group of sub-contractors. The knowledge based contractors won't drop dead if Carillion goes bust, the grunt sub-contractors may experience some debt-management issues, but they will still be around one way or another.
It's a sad fact of modern business. Often when you start digging around, they are nothing more substantial than a Bitcoin.
It doesn't really matter *that* much.
All they do is assemble and orchestrate a group of sub-contractors. The knowledge based contractors won't drop dead if Carillion goes bust, the grunt sub-contractors may experience some debt-management issues, but they will still be around one way or another.
It's a sad fact of modern business. Often when you start digging around, they are nothing more substantial than a Bitcoin.
"the grunt sub-contractors may experience some debt-management issues" - typically the "grunt" contractors issue invoices at 30 day intervals, on 60 day terms. Thus work to the end of say September is paid at the end of November, work in October paid at the end of January and work in November at the end of December. If the main contractor goes bust in December before paying for September the "grunt" can see three months money vanish. That 25% of the annual turn-over lost. To understand the potential effect, try not drawing your wages for the next three months and then tell us how you got on " experience some debt-management issues"!
The BBC quotes David Lidington as saying that public sector contract staff should continue to attend work, and will be paid. So that at least takes care of what most would agree is the most important stuff. This presumably also explains the story that one county had the fire service about to deliver school meals, but didn't in the end require them to. Desperate measures indeed.
It's one thing guaranteeing the pay of staff on public sector contracts, but they also need equipment and supplies. For example, I have read that their fuel cards are no longer accepted.
I can't see any comments on the situation on the NR or DfT web sites.
Unless I'm mistaken and this case is different, HMRC haven't had preferential creditor status for some years and have to take distribution alongside normal unsecured creditors.As this is a liquidation, as a supplier you will not receive any of the money you are owed (for some considerable time at least). The liquidation creditors' dividend payment will only be a proportion of the debt owing to you and probably only a small proportion at that as employees wages up to today, taxes outstanding such as VAT, PAYE and NI, and bank loans are all paid first.
I wasn't willing to waste an excessive amount of my time on hold-however you do get through to the switchboard at least, with no suggestion of anything being untoward...I've been wondering about the various service contracts that Carillion deliver for TOCs. For example does anyone know if Northern's Customer Experience Centre is open today?