Laura Sharman 24 January 2018

Council to call in bond following Carillion collapse

Council to call in bond following Carillion collapse

Leeds City Council has announced it is calling in the bond put in place to protect public funds from the collapse of Carillion.

The liquidated company had been awarded the contract to deliver the city centre cycle Superhighway City Connect 2, (phase 1) last October.

However, the council confirmed the contract was subject to an ‘On Demand Bond’ from HSBC in the event on Carillion becoming insolvent.

Chief executive of Leeds City Council, Tom Riordan, said: 'As part of the original contract for work on the Superhighway City Connect contract we made sure that public funds were protected by making it a condition that a bond was woven into the Carillion contract in the event of the contractor becoming insolvent.

'Consequently we are in contact with the bank, HSBC, who provided the bond to confirm that Leeds City Council are calling-in the payment of the guarantee.'

 
comments powered by Disqus
Sign Up