The Tier 1 contractor appointed administrators EY last week.
Supply Chain
The last filed accounts showed a turnover of over £2bn and subcontractors have been ‘nervous’ since this time last year when rumours of late payments surfaced.
With the majority of credit insurers flagging issues as early as mid 2023, cover was mostly removed around the end of last year with one major insurer removing cover in early March.
Rumours are abound with particular subcontractors being hit for as much as £50m!
The surety market has mentioned a figure of circa £60m, which is less than half their exposure at a similar stage last year.
The bigger concern now is subbies who were not trading with ISG, getting hit by the ‘Domino’ effect of non payment to their clients.
Time will tell, but judging by the amount of calls we have had since Monday last week – this could be a bigger black hole than Carillion……