Network Rail has struck a deal with the Official Receiver's special manager, PwC, for approximately 300 Carillion Construction smaller rail suppliers to be paid the arrears they are owed.

The deal covers suppliers arrears from Christmas through to 15 January, the date when company went into compulsory liquidation. Around two-thirds of Carillion's rail supply chain will be affected.

Last week, it was announced all certified work after 15 January to all suppliers on rail projects will be paid until further notice, with former Carillion employees being paid until at least mid-April.

-- Advertisement --

Matthew Steele, Network Rail's Commercial Director, said: "We recognise how challenging this period has been for our small suppliers. We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business. These small organisations are a critical part of our supply chain both now and in the future.

"PwC, together with our in-house task force and the Carillion teams, are carefully managing this difficult period to keep all our rail projects going, and are working hand-in-glove to find ways to support staff and suppliers alike."

(LM)