Businesses put on insolvency alert
Uncertainty lingers over how many businesses could fold in the current restrictive credit climate, PwC says
PwC has warned that a gulf is forming between corporates despite evidence of
a reduction in insolvencies.
Mike Jervis, partner in the Business Recovery Services practice at PwC, said:
‘While companies have so far avoided formal insolvency, less credit-worthy
corporates are finding it increasingly difficult to borrow at affordable rates
in the current climate. There is still uncertainty as to how many businesses
will fail as a result of the more restrictive credit environment.’
Jervis said that credit had been readily available to corporates until this
summer and the downward trend in corporate insolvencies was a reflection of
PwC also commented on the drop in personal insolvencies, warning that there
could be more to come.