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Realistbear

Corporate Insolvencies At Record High-and Its Getting Worse

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http://uk.biz.yahoo.com/07082009/325/insol...ecord-high.html

Insolvencies at record high

LONDON (Reuters) - More than five thousand companies in England and Wales went into liquidation in the second quarter of this year and a record number of people succumbed to insolvency, official figures showed on Friday.

The Insolvency Service said company liquidations rose 39.1 percent on a year ago to 5,055. Personal insolvencies rose 27.4 percent on a year ago to 33,073, the highest since records began in 1960.

The economy contracted sharply in the first half of the year and while surveys* are pointing to a tentative recovery, analysts said the rate of insolvencies would continue to rise.

_______________________

*Expert opinion from EA's

Edited by Realistbear

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Pretty much inline with personal bankruptcy data recently released. Today's headline in the Telegraph hit the nail on t' head: the recession is far from over.

The EAs must have been fibbing again perhaps?

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Pretty much inline with personal bankruptcy data recently released. Today's headline in the Telegraph hit the nail on t' head: the recession is far from over.

The EAs must have been fibbing again perhaps?

BBC News 24 carried the caption "RBS Recovery?" at the bottom of the screen overnight.

Either they know or don't know.

Wonder how they will spin this insolvency data today.

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BBC News 24 carried the caption "RBS Recovery?" at the bottom of the screen overnight.

Either they know or don't know.

Wonder how they will spin this insolvency data today.

All that is happening is that people and businesses are using the green shoots as an opportunity to accelerate their insolvencies so that they can start fresh with their affairs restructured now that the economy is recovering. The numbers are being front loaded by circumstances and do not reflect the strong underlying fundamentals of our economy and recovery.

It is really a good sign to anyone who thinks clearly about it. People and businesses have anticipated the recovery by using the recession as means to prepare themselves for the recovery that has already taken hold. This is a sign of strength rather than weakness.

[Or some other nonsense like that : The trick is to say a lot without saying anything at all in a way that sounds like you know what you are talking about]

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http://www.ft.com/cms/s/0/2342d2a6-8331-11...144feabdc0.html

FT

Despite early signs of optimism, corporate insolvencies tend to lag economic performance. We therefore expect to see high levels of failures into 2010 and beyond.â€

..../

Geoff Carton-Kelly, a restructuring partner at Baker Tilly, accountancy firm said the rise in insolvencies was unsurprising given the tough economic conditions. But he noted that the rise is likely to have been blunted by the extended payment terms being offered by banks, Revenue & Customs and landlords. He said if this supportive approach changed, “it could result in a rise in insolvencies as problems previously delayed return with a vengeance.â€

He said that personal bankruptcies were likely to continue to rise, as job losses increased. But he noted that a large number of people, an estimated 700,000, had enrolled in debt management plans, who have been saved from being added to the insolvency statistics.

Green shoots are definitely "beyond"--reality, that is. IMO, the worst is yet to come. Delayed by as much as 6 months by Gordon's debt based bail out.

Edited by Realistbear

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BBC News 24 carried the caption "RBS Recovery?" at the bottom of the screen overnight.

Either they know or don't know.

Wonder how they will spin this insolvency data today.

Insolvencies give rise to Record no of people available to start new business

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that doesnt stop them being available

Brightness all round then. The recently insolvent can start up businesses confident in the knowledge that there are plenty of workers available to fill the new vacancies.

p-o-p

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All that is happening is that people and businesses are using the green shoots as an opportunity to accelerate their insolvencies so that they can start fresh with their affairs restructured now that the economy is recovering. The numbers are being front loaded by circumstances and do not reflect the strong underlying fundamentals of our economy and recovery.

It is really a good sign to anyone who thinks clearly about it. People and businesses have anticipated the recovery by using the recession as means to prepare themselves for the recovery that has already taken hold. This is a sign of strength rather than weakness.

[Or some other nonsense like that : The trick is to say a lot without saying anything at all in a way that sounds like you know what you are talking about]

This might be a more realistic scenario than you think. Anyone who doesn't have too many assets worth battling to keep might be better off using the opportunity to go bust. Particularly businesses where the owner's knowledge/skills/contacts is the main advantage.

A lot of businesses will lurch on still paying high rents on old leases an taking on huge debts to see them through. Anyone starting with a debt blank sheet might be better off. Especially, given that large businesses can be built relatively quickly these days.

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