The Business Rescue Service: Company Insolvencies to Rise?

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 4, 2011 -- The Business Rescue Service gave their 2011 outlook today against insolvency industry predictions of an ‘upward curve’ to the pattern for UK company insolvency. The Graydon credit reference agency had previously released predictions based on their commercial data of a year characterised by increasing insolvencies as the year rolls out.

The predicted gradual upward curve is due to a number of factors, including HMRC’s Time to Pay Scheme. This is affording some 80,000 UK businesses a longer period than usual in which to meet their tax liabilities. Whilst this affords more time to attempt a trade in, it is being accused by some of distorting the figures for UK company insolvency. When the scheme’s six or twelve month period of grace expires, it is predicted that many companies will nonetheless encounter fatal difficulties some short time afterwards. The Business Rescue Service had this advice for UK directors:

“Whilst we have developed a specialism in negotiating with HMRC on our business client’s behalf, we would also caution that tackling HMRC arrears are but one part of the overall return to financial health. There are other areas to support businesses with, through our business health check. This can identify future problems and the corresponding remedial actions to prevent them unfolding and threatening the business. Then there’s our services negotiating with other creditors, not only HMRC. We sometimes support firms by intervening on their behalf to create the time to make the necessary adjustments. We will carefully appraise your business needs and enable you to find and implement the best possible approach”.

Graydon forecast that rising company insolvency is likely to be firmly back on the agenda during 2011, starting in the second half of the first quarter. There are predictions in many sectors including business recovery itself that public spending cuts will have a serious adverse effect on UK firms this year. The tighter situation for business lending could also be an enduring contributory factor. The Business Rescue Service gave their comments to these predictions:

“It’s not clear yet whether the UK is actually going to enter a double-dip recession. It has been predicted many times by many different analysts but to date this has not happened. Whatever the year holds in store, we are expecting more calls about company insolvency - the figures are just still far higher than before the economy began to change in 2008. Our clients could be at the stage where they need a formal solution, such as a Company Voluntary Arrangement, or we can support them throughout pre-Pack Administration, for example. Even if a company is at the stage where liquidation is occurring, we are still on hand to find the strongest position possible; we understand directors are going to need comprehensive support to begin trading again following liquidation. We also advise directors on their own personal and corporate liabilities to afford them the highest possible level of protection during any company insolvency”.

Any director concerned about company insolvency can contact the Business Rescue Service for immediate, confidential advice. Their advisors and licensed insolvency practitioners have over 20 years combined experience helping UK firms to find solutions to difficult business conditions.
To speak to an advisor today, call 0845 468 2395

http://www.businessrescueservice.co.uk/

More information can be found online at http://www.businessrescueservice.co.uk/

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