Building supply and trade personal guarantees likely to escalate due to Carillion collapse.
Personal guarantee claims are likely to sky rocket as contractors, sub-contractor s and construction suppliers who are affected by the Carillion demise struggle with cashflow. The knock on effects are likely to extend a lot further as each of these firms might themselves be working on non-Carillion related projects and dire cashflow issues lead them to default across other projects. The effect is likely to fan out as other non-Carillion related firms get caught up in this tidal wave of cashflow issues, creditor defaults and insolvency.
Although most modern day building supply credit application forms incorporate more robust personal guarantee phrasing there are other issues that arise which may provide a challenge to a potential personal guarantee claim. And some trade suppliers and/ or their branches are still using old style credit application forms that provide a much wider scope for challenging a trade supply personal guarantee.
You can find out more about trade supply and other personal guarantees HERE