Further to my post of yesterday, the current issue of Private Eye reports that Carillion stopped paying into its pension fund last August - a signal, the Eye suggests, that the company was in a far worse position than it admitted at time of its second profit warning in September.
As to sub-contractors, not all will be covered by the government's bland assurance last Wednesday that " when it was decided to place Carillion in insolvency, the Government had two priorities: to protect and maintain the delivery of vital services in schools, hospitals and prisons and on the railways, and to support not only the 19,500 people directly employed by Carillion, but the contractors and small businesses involved." In fact, it seems likely that sub-contractors owed money up to 15 January 2018 for services supplied will simply rank as unsecured creditors and have to submit a claim in the liquidation. Given that a substantial part of the book assets of the company is "goodwill" (thanks again to Private Eye for that information) one cannot see unsecured creditors recovering much from the receivers.
2 comments:
until we have honest government more of these company's will fail even thou this government chucks more contracts at them but alas us the tax payers and the pension pot will lose out
News today that KPMG is to be investigated by its own profession's watchdog. Past experience related by Private Eye suggests that this is no more than a lame response to media pressure, and that no more will come of it than a slap on the wrist. All the big accountancy firms have been seen to go along with dubious practices by their major clients. KPMG is just the most egregious example.
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