Financial Distress 

Where Z scores first

Where Z scores first

The effects of January’s bankruptcy of construction services group Carillion continue to spread outwards. This story of “recklessness, hubris and greed” – as labelled by a joint parliamentary committee – will spew out consequences for Carillion’s former employees, suppliers and customers for years to come. In the process, it will undermine confidence not just in the company’s ex-directors and auditors – that’s a given – but in the regulatory bodies that might have been better watchdogs, especially the Financial Reporting Council and the Pensions Regulator. And all along it will question the very logic of the private finance initiative, the partnerships between the public and private sectors that underpinned the group’s core activities.

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