BusinessBusiness RecoveryScottish firms beef up insolvency divisions

Scottish firms beef up insolvency divisions

Big Four firm Ernst & Young predicts that the Scottish economy will be harder hit by the recession

Accountancy firms in Scotland are beefing up their insolvency practices for
an expected influx in corporate administrations.

Accountants believe companies in the north of the country could be at risk
from increasing insolvencies reported The
Sunday
Times
.

Dundee based Henderson Loggie has recruited three people from restructuring
firm Begbies Traynor to prepare for the surge.

“The reason there has not been a great number of corporate failures so far is
that I know that the banks are only just gearing up to look at the impaired
assets by increasing staff numbers in their impaired asset teams” George Dale,
head of business recovery at Henderson Loggie told
The
Sunday Times
.

He added: “These teams are looking at getting the banks’ money back. These
companies are not the high-value ones which were dealt with first, but the
smaller firms. We expect to see a large volume of insolvencies in early 2010 and
through to 2011.”

Ernst & Young’s Scottish Item club forecast that Scottish GDP would
contract by 4.9% compared with a UK wide contraction of 4.6%.

Further reading:

KPMG closes more First Quench stores

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