Letters - Growing rich: are insolvency practitioners breaking up too many businesses?
So the vested interests have spoken. Reform of the insolvency laws is a bad thing (Insolvency plan sparks fear, page 3, 21 June).
Since 1986, insolvency practitioners have grown rich at the expense of creditors and shareholders. They have absolute preference over the company’s assets and every incentive to act in their own, and the banks’, interest.
Thousands of viable businesses had been destroyed. Directors, employees, unsecured creditors and shareholders, have lost everything at the whim of banks calling in overdrafts and appointing receivers.
The time has come to say ‘enough’. I welcome the chancellor’s reforms.
His next step should be to abolish the rights, privileges and position of insolvency practitioners.
They are unnecessary, any competent professional can do a better job.
I say this advisedly, because few insolvency practitioners have any real experience of running a business. All they know is how to sell assets and destroy jobs.
Finian Manson MBA FCCA,