Some 25 to 30-thousand creditors of Carillion, a large number of which will be small businesses across the country, have today been warned to expect in the region of 1p for every £1 owed, 1% of outstanding debt. This follows the news that the construction giant had less than £30m in cash compared with over £1.5bn in debts at the time of its collapse on Monday.
Many of the SMEs currently owed money by Carillion will find the coming weeks and months a major challenge. Suzannah Nichol, chief executive of UK Build, warned: "Previous construction collapses show that 17-18% of creditors do not survive the next five years.” The Times reports multiple sites in Manchester and the North that have already closed, and one business owed £800,000 that is very unlikely to survive.
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