Carillion Target As Much As £1bn In Damages

November 22, 2021

Published by Construction Enquirer

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CARILLION LIQUIDATOR FILES £1BN CLAIM AGAINST ACCOUNTANTS

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The Official Receiver is understood to be advancing a legal claim against auditors of collapsed contractor Carillion that could target as much as £1bn in damages.

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Sky News said the liquidators filed the claim on Friday.

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It gives the Official Receiver four months to submit more details of its case against KPMG.

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The Official Receiver is understood to be pursuing £230m of losses in the form of dividends it claims should never have been paid out by Carillion as it headed towards financial failure

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It also wants to recoup £20m of advisory fees that it is expected to allege were avoidable.

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The claim could be increased is the Official Receiver succeeds with an argument that it should also be compensated for trading losses in the run-up to Carillion’s collapse.

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Sources told Sky News the action against KPMG was driven by the liquidators’ statutory duty to maximise recoveries for Carillion’s creditors.

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The contractor went bust in January 2018 owing nearly £7bn.

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