PwC: UK corporate insolvencies levelling out

Corporate insolvencies rose year on year, but recent stats show a slowdown in
company failures, according to PwC.

Analysis by the firm showed that on a 12 month basis the overall number of
corporate failures has increased by 5% compared to the previous year.

However, the figures provide a glimmer of hope as the first three months of
2010 had 4% fewer corporate insolvencies on the previous quarter, and 20% lower
than the same period in 2009.

Mike Jervis, partner in the business recovery services practice at PwC, said:
“While UK businesses are still suffering from the effects of the global
recession, many will be breathing a sigh of relief as more signs of a recovery
become apparent.”

“At PwC we are seeing a fall in the number of administrations as businesses
are starting to look at other options before insolvency is used as a last
resort. Financial restructuring, company voluntary arrangements and schemes of
arrangement are now being used as businesses are now starting to realise that
the sooner problems are identified, the quicker a solution can be found.”

PwC’s research concluded the sectors which are most affected are:
construction, manufacturing, retail and real estate.

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