Corporate Insolvency Drops

Corporate liquidations decreased slightly in the final quarter of 2009.  In total, Q4 saw 6031 corporate insolvencies in England and Wales, of which 4566 went into liquidation proceedings.

The liquidations were broke up between 3228 creditor’s voluntary liquidations (CVL) and 1338 compulsory liquidations. This was a decrease of 1.7% on Q3 and 1.1% on the same period in 2008. The improvement mainly game from the fact compulsory liquidations had fallen a massive 14.2% on 2008s figures which compensated for CVLs rising by 5.7%.

Throughout 2009, approximately 1 in every 114 active businesses throughout England and Wales entered liquidation proceedings, which works out at a similar rate to 2008.

In addition, the remaining 1465 were broken up into 849 administrations, 397 receiverships and 219 company voluntary arrangements (CVA). These were way down on the previous year, dropping 39.7% on the same period a year earlier.

Though these figures do seem to bode well for the future of the UK businesses, they are urged to maintain caution about the impending ‘insolvency lag’ that may hit them in the near future. Previous figures have shown that corporate insolvencies do tend to increase shortly after recessions end as creditors become more aggressive seeking their payments than they may previously have been.

Posted at 03:13PM Feb 05, 2010 by Kris Wigfield in Insolvency  |  Comments[0]