BusinessBusiness RecoveryBusinesses put on insolvency alert

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
this.

PwC also commented on the drop in personal insolvencies, warning that there
could be more to come.

Further reading:

PwC warns of troubled period for borrowers

Pre-packs boosted by High
Court decision

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