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More details emerge of Carillion debt

23 January 2018

Approximately £75m is owed to around 80 engineering service providers by Carillion, according to a snap poll conducted by two industry associations after the firm's failure last week.

Results from the survey, conducted by the Building Engineering Services Association (BESA) and the Electrical Contractors' Association (ECA), indicate that the overall losses are likely to be much higher.

The study showed that the value of ongoing Carillion contracts is £47.2m, many of which are now at risk, according to the statement released earlier today.

On average, micro businesses (employing less than 10 people) are owed £98,000, with one owed more than £250,000.

Small firms, with up to 49 employees, are owed an average of £141,000, with one business reporting an outstanding sum of £141,000.

One medium-sized business (these employ between 50 and 249 staff), is reported to be owed £1.4m, far in excess of the average figure of £236,000 for this sector.

Large companies, with employee numbers exceeding 250, are owed an average of £15.6m, although Balfour Beatty has been widely reported to be owed £45m for its losses from joint ventures with Carillion.

BESA and ECA also met with the government and liquidator PwC last week and were told that any private sector work undertaken by the company's suppliers before 15 January this year would be treated as "unsecured debt" and "placed at the back of the queue behind other creditors", the release stated.

The BBC has also reported that Oxfordshire County Council paid Carillion £10.65m last year to terminate a contract in June this year.

This figure also covered work already completed for providing services such as school meals, cleaning, building maintenance, property services and construction.

The company had signed a 10-year contract in 2012, but most of the services would be transferred, except FM, said the BBC.

Services would be delivered through a mixture of bringing these in-house, continuing with suppliers and working with existing council sub-contractors, with further consideration given to completing any unfinished work.

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