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THE WEBSITE OF THE INVESTORS CARILLION CLASS ACTION

Welcome to the official Investors website of the Investors Carillion Class Action.

CARILLION CLASS ACTION

The Financial Conduct Authority has said that Carillion and some of its executive directors “recklessly misled” markets and investors over the deteriorating state of its finances before the company collapsed into liquidation with somewhere in the region of £6 billion of debt.

The UK government has launched a legal bid to ban eight former directors from holding senior boardroom positions, almost three years on from the collapse of the outsourcing business.

The Insolvency Service, which handles corporate collapses, said it was seeking to disqualify the directors “in the public interest”, in a move that could result in them being banned from acting as UK company directors or in senior management for between two and 15 years each.

The main previous Directors are allegedly wealthy individuals and there is also a substantial Chubb Directors & Officers Liability policy in place.

 

 

On 

 

Wikipedia

 

On the 15 January 2018, the BBC reported Carillion was to go into liquidation (as opposed to administration), the company having issued a notice to the London Stock Exchange "that it had no choice but to take steps to enter into compulsory liquidation with immediate effect". The notice anticipated an application to the High Court for PwC to be appointed as Special Managers, to act on behalf of the Official Receiver. Carillion chairman Philip Green (appointed in May 2014) said:

This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years. [...] In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.

Six UK Carillion businesses, including Carillion plc and Carillion Construction Ltd, were liquidated in the first phase. On 19 January, Carillion (AMBS) Limited was placed in provisional liquidation, and on 25 and 26 January 2018 ten UK further companies went into liquidation. Another business went into liquidation on 2 February, followed by ten more on 16 February 2018.[66] Two Carillion businesses in Jersey and Guernsey also went into liquidation, in January and March 2018 respectively In June 2018, Carillion (Qatar) LLC went into a locally managed liquidation. By the end of 2018, 91 Carillion companies had been liquidated.[69]

In April 2018, the Official Receiver estimated the total liabilities of the then 27 liquidated UK companies at £6.9 billion, a figure over three times higher than given in the Group's accounts at the end of 2016.

On 6 August 2018, the Insolvency Service announced the end of the trading phase of the liquidation, described by the Official Receiver as "the largest ever trading liquidation in the UK". Work on finalising Carillion's trading accounts and payments to suppliers, and investigations into the cause of the company's failure, including the conduct of its directors, continued.In December 2018, it was reported that former Carillion directors Philip Green and Richard Howson had been interviewed by the Insolvency Service.[73] In November 2019, the liquidators said they were reportedly close to clawing back around £510m from asset sales, insurance and debt recoveries.

London South Bank University

The collapse of corporate giant Carillion in January 2018, highlights a culture of financial deviance embedded at the heart of the UK construction sector, according to research by London South Bank University (LSBU).

British Pound Notes
 

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