Today (15 January 2017) the Rt Hon CBE MP Minister for the
Cabinet Office and Chancellor for the Duchy of Lancaster
announced the Government will continue to deliver all public
sector services following the insolvency of Carillion PLC.
After meeting with their bankers and lenders, Carillion has
announced its decision to initiate insolvency proceedings. The
Official Receiver has been appointed by the court as liquidator
along with partners at PwC that have been appointed Special
Managers.
Government will provide the necessary funding required by
the Official Receiver to maintain public services.
Those already receiving their pensions will continue to
receive payment. A dedicated web page and helpline have also
been set up for workers who may be concerned or have questions
about their personal situation.
The Rt Hon CBE MP said:
“It is regrettable that Carillion has not been able to
find suitable financing options with its lenders
but taxpayers cannot be expected to bail out a private
sector company.
“Since profit warnings were first issued in July, the
Government has been closely monitoring the situation and has been
in constructive discussion with Carillion while it sought to
refinance its business. We remained hopeful that a solution could
be found while putting robust contingency plans in place to
prepare for every eventuality. It is of course disappointing that
Carillion has become insolvent, but our primary responsibility
has always been keep our essential public services running
safely.
“We understand that some members of the public will be
concerned by recent news reports. For clarity-- All employees
should keep coming to work, you will continue to get paid. Staff
that are engaged on public sector contracts still have important
work to do.
“Since its inception in the 1990s private
finance has helped to deliver around £60 billion of much-needed
capital investment in infrastructure in the UK across a range of
projects and we will continue to maintain partnerships with
responsible firms in future.”
EDITOR’S NOTES
-
For media enquiries on Government’s response to
Carillion insolvency contact Cabinet Office Communications:
020 7276
2210/07074 667
000 (out of hours).
-
Carillion held approximately 450 contracts with
government, representing 38% of Carillion’s 2016 reported
revenue. Key central government contracts are held with DfE,
DHSC, MoJ, MoD, and DfT. For media enquiries about
departmental services contact: DfE: 0207 783 8300/ 020 7783 8300 (out of
hours) ; DHSC: 0207 210
3872/ 07050 073 581 (out
of hours); MoJ: 020 3334
3536/07659 173 270 (out
of hours); DfT: 0207 944
3021/ 020 7944 4292 (out
of hours); MoD: 02072187907 (out of
hours)
-
Anyone worried about their pension situation can ring
The Pension Advisory Service (TPAS) on 0300 123 1047 for free
and impartial guidance. TPAS has also set up a special
helpline number for members of these pension schemes: 020
7630 2715. JobCentre Plus, through its Rapid Response
Service, stands ready to support any employee affected by
this announcement.
-
The Official Receiver works for the Insolvency Service,
which is an agency of the Department of Business, Energy and
Industrial Strategy. He is liquidator of the companies and
his job is to realise the assets of the company, deal
with creditors’ claims, and investigate the cause of failure.
The Official Receiver also has a duty to investigate
generally the business, dealings, and affairs of the company.
In his role as liquidator, the Official Receiver is an
officer of the court and is independent from government. The
legal and practical consequence of liquidation is that the
liquidator takes over the day-to-day control of the company.
In liquidation, the directors will have no continuing role in
controlling and managing the company. The liquidator’s
primary duties are to the creditors and the cost of the
liquidation are paid from the company’s assets.
