The information comes from a report by The Commons’ business and work and pensions committees. Therein laid evidence for Carillion’s scheme brought to light by Santander, the bank that ran Carillion’s Early Payment Facility (EPF), ahead of a joint report into the company’s collapse due to be released on Wednesday, May 16, 2018.
Carillion contractors were given standard payment terms of 120 days, however, they were able to receive cash earlier under the EPF by accepting a smaller amount. Two large credit ratings agencies, Moody’s and Standard & Poor’s, say the company’s accounting for their EPF concealed its true level of borrowing from creditors, according to the committees.
The British multinational facilities company had employed more than 43,000 people, including 20,000 in the UK, before it was forced to enter liquidation, amid mounting debts.
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