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Carillion plc in liquidation

15 January 2018

On Monday 15 January 2018 the High Court appointed the Official Receiver as liquidator of Carillion plc and various other group companies on the petition of the company’s directors. At the same time, the court also appointed Michael John Andrew Jervis, David James Kelly, David Christian Chubb, Peter Dickens, David Matthew Hammond and Russell Downs of PwC as special managers to support the Official Receiver.

The other group companies which entered compulsory liquidation at the same time as Carillion plc include: Carillion Construction Limited, Carillion Services Limited, Planned Maintenance Engineering Limited, Carillion Integrated Services Limited and Carillion Services 2006 Limited.

The Official Receiver’s priority at this time is to ensure the continuity of public services while securing the best outcome for creditors. All companies affected are continuing to trade and, unless told otherwise, all employees, agents and subcontractors are being asked to continue to work as normal and told that they will be paid for the work they do during the liquidations (i.e. from 15 January 2018 onwards). The companies will continue to operate from their present locations and rent accruing during the liquidation will be paid as an expense from company assets. It is too early to say how long these arrangements will remain in place but PwC will be leading discussions with all relevant parties including Carillion’s customers, suppliers and landlords to determine ongoing arrangements.

As special managers, PwC will have all the same powers as if they had been appointed as liquidators themselves and, crucially, they have the manpower and experience to manage a liquidation of this size. All parties are being encouraged to engage with their usual contacts at Carillion unless the matter requires urgent attention in which case PwC have set up designated email accounts in order to answer questions and minimise disruption. Further information can be found here.

We can assist you if you need more analysis of your legal position in light of Carillion’s liquidation and can help you to plan your next steps in the wake of these developments.

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