The statistics on corporate and personal insolvencies for the whole of 2016 show that generally these are at their lowest levels for a number of years, although personal insolvencies had risen for the first time since 2010.
This mirrors our experience of current trends and we are increasingly seeing our work focusing on recovery, restructuring and advisory work.
We are able to assist businesses with organisational change, sourcing re-finance and hands on day to day advice in order to work through existing financial and structural difficulties. This increases the likelihood of entities avoiding entering the insolvency process while preserving jobs and creating growth. The profession has emphasised the roles of recovery, restructuring and advice for a number of years and Insolvency Practitioners can bring a unique skill set to this role and this emphasis has contributed to the current increase in advisory work.
Our experience is echoed in a recent survey by our trade body R3 which found that
restructuring has generally increased throughout the profession and this increase is attributed to greater awareness and a desire to avoid formal insolvency processes where possible.
The most important thing for any company or individual in these situations is to seek advice early and in consultation with an IP find the right solution for them, their creditors and their stakeholders which in some cases may be restructuring and in others formal insolvency.
President of R3 Andrew Tate has stated “Insolvency and restructuring professionals provide a valuable contribution to the business world and to the wider economy, far beyond what might be traditionally expected of us. In these uncertain times, he expertise that we can offer will be more necessary and more valuable to clients than ever”.
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