Profession
The credit crunch is evolving into a “corporate crunch”, say Freshfields insolvency lawyers.
The third quarter of 2008 saw 4,000 corporate insolvencies in England and Wales, an increase of more than ten per cent on the previous quarter, and more than 26 per cent up from the previous year, according to figures released by the Insolvency Office. Company administrations increased by seven per cent in the same period, up by more than half on the previous year.
Ken Baird, head of restructuring and insolvency at Freshfields Bruckhaus Deringer, says: “Today’s rising administrations statistics, demonstrate how the credit crunch is gradually evolving into a corporate crunch.
“As lending conditions remain tight and, where available, more expensive, the challenge for corporate UK is being exacerbated by a presumed and likely recession which is already affecting consumer confidence and will most likely continue to hit the property, retail and leisure sectors hardest.
“‘As efforts continue to be made to prevent an economic rot, it is all the more important that small, medium and larger businesses can access desperately needed liquidity.”
