The company got into trouble after losing money on big contracts and running up huge debts. According to Vicky Ford, MP for Chelmsford, there had been low confidence in the company for months since its failure to deliver in respect of its contracts for Chelmsford prison.
Carillion is involved in major projects such as the HS2 high-speed rail line, as well as managing schools and prisons. It employs some 43,000 people across all its worldwide operations. The conglomerate also employs thousands of smaller firms, who will be keen to know how they’ll be affected by its collapse. Some of Carillion's contracts will be taken on by other firms, whilst others could be taken back into the public sector.
Those that are employed by Carillion will inevitably be seeking employment advice in the wake of an announcement that, in the short term, they should continue going to work. Their rights and obligations will no doubt need clarification, however, a high number of redundancies is expected.
Thousands of staff have money in Carillion pension funds, which have a reported deficit of almost £600m. Those funds will now be managed by the Pension Protection Fund (PPF), who said that liquidation "raises serious concerns for all people involved".
Sub-contractors, suppliers, those with the benefit of guarantees and indemnities and the company’s creditors may also be feeling very nervous. What will happen to claims for payments under certificates, payment obligations under JCT contracts and will guarantees given by the company yield anything?
The Protocol sets out criteria which a creditor must follow prior to issuing a claim. It applies to any business claiming payment of a debt from an individual (including a sole trader) but is not applicable to business-to-business debts unless the debtor is a sole trader.
The Protocol aims to encourage early engagement and enable the parties to resolve the matter without the need for court proceedings.
A Letter of Claim must be sent to the debtor. It should include the information specified in the Protocol, for example:
The Letter should enclose:
Havering businesses, small and large, will be attending a Business Showcase and Networking Exhibition in October, organisd by HCCI in association with Queens Theatre, Hornchurch.
Date: Monday 9th October 2017
Time: 6.30pm - 9.30pm
Venue: Queen's Theatre, Billet Lane, Hornchurch, RM11 1QT
HCCI's mission is to promote a positive, balanced, vital economy and preserve those unique qualities that are good for business and make Havering a very special place in which to live and work. With a full house of business exhibitors, the event will be opened by the Mayor of Havering and will include: