Category Archive Insolvency: Bankruptcy

ByMichael Morrison

10% of Businesses Fail After Entering a Company Voluntary Arrangement

Ten percent of businesses collapse within a few years of entering into a Company Voluntary Arrangement (CVA) due to a number of factors:- a) Suppliers who agreed to the CVA may later impose stricter terms of credit. b) A well drafted CVA is only a good road map in the progress of regrowth. c) Lack of sensible restructuring activity ensues.                                                                                                                                                                                                                                                                                                                                                The landlords of the insolvent companies often suffer heavy losses.

 

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ByMichael Morrison

Insolvency: 200,000 businesses may go bankrupt

An  interest rate rise of just 1% could tip more than 200,000 businesses into administration across the country, a leading insolvency practitioner warned today.

The number of companies suffering from “significant” distress has risen by 34% to 237,362 over the past year despite a recovery in the UK economy they said.

However, the number of businesses in “critical” distress fell 9% to 2,745.

They implored that it is crucially important for the Governor of the Bank of England, Mark Carney, to exercise tightrope precision in his decision on the timing of interest rates rises if he wants the UK to return to more normalised conditions, without initiating an emergency stop on its economic recovery.

Original reporting by the London Evening Standard – 18/7/14

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