DLA Piper and Addleshaws join Carillion legal line-up with roles on power business sale

A raft of firms are advising on the sale of collapsed construction firm Carillion’s UK power framework business to construction firm J Murphy & Sons.

Addleshaw Goddard is acting for J Murphy & Sons, with Manchester M&A partner Shelley McGivern leading the firm’s team.

DLA Piper is acting for the official receiver on behalf of Carillion, working alongside Dentons. Dentons London restructuring partners Nigel Barnett and Neil Griffiths have been advising on the collapse since mid-January.

The deal – the value of which is undisclosed – means that 22 Carillion employees will transfer over to J Murphy & Sons as its takes over Carillion’s position on National Grid’s electricity overhead lines, substation and underground cable framework contracts.

The news comes after Legal Week revealed that Carillion’s managed legal services arm, Carillion Advice Services (CAS), could also be sold off as a separate business as dozens of in-house legal staff face up to an uncertain future following the construction giant’s collapse.

Potential buyers were understood to be touring Carillion’s managed legal services arm last week. CAS is staffed by about 70 paralegals, the bulk in Newcastle, plus 10 in Birmingham.

In a briefing to staff last week, directors at CAS said there had been significant interest in the managed services arm and that they were currently in the advanced stages of a sale process to a number of interested parties.

CAS provides legal support services to Carillion but also has external clients – including Carillion’s panel firms – for which it handles routine, low-cost legal work such as contract management, document review and due diligence.

Freshfields Bruckhaus Deringer, Mayer Brown, Clifford Chance (CC), Slaughter and May and Linklaters are among a line-up of other law firms advising on the fallout from Carillion’s collapse.

Slaughters is a longstanding adviser to Carillion, while Freshfields, which had been advising the company’s pension trustees on ongoing restructuring talks, was brought in to advise the official receiver on the liquidation. Mayer Brown has been working with the Pension Protection Fund, while CC and Linklaters have been advising the company’s lenders.