Carillion’s smaller rail suppliers to be paid arrears

Around 300 of Carillion Construction Ltd’s smaller rail suppliers are to be paid the arrears they are owed following a further agreement between the Official Receiver’s special manager, PwC, and Network Rail.

The agreement covers Carillion’s small rail suppliers arrears from Christmas time through to 15 January when the company went into liquidation and touches around two-thirds of Carillion’s rail supply chain.

This is in addition to last week’s announcement that all certified work after 15 January to all suppliers on rail projects will be paid until further notice and that Carillion rail employees will be paid until at least mid-April.

Matthew Steele, commercial director, said: “We recognise how challenging this period has been for our small suppliers. We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business. These small organisations are a critical part of our supply chain both now and in the future.

“PwC, together with our in-house task force and the Carillion teams, are carefully managing this difficult period to keep all our rail projects going, and are working hand-in-glove to find ways to support staff and suppliers alike.”

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Notes to editors:

  • These arrears payments will start being made today and will take a number of working days to process
  • Network Rail and PwC are continuing to explore and investigate arrears owed to other, bigger rail suppliers and how they can best be dealt with