Carillion used early payment facility to hide £500m debt

By Jordan Marshall2018-05-14T11:00:00

MPs say Carillion’s supply chain financing system “hid the true extent of its massive debt”

Carillion used its early payment facility to hide £498m of borrowed cash, according to the MPs running the inquiry into the company’s collapse.

Two major credit ratings agencies, Moody’s and Standard & Poor’s, have claimed that Carillion’s accounting for their early payment facility (EPF) hid its true level of borrowing from financial creditors.

They argue the EPF structure meant Carillion had a financial liability to the banks that should have been presented in the annual account as “borrowing”.

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