Latest News from TMA (UK)
9 November 2009 | There may be MORE trouble ahead…
... says Tyrone Courtman!
The general consensus among turnaround specialists and insolvency practitioners in the midlands is that business is a little quieter than you might expect given the depth and intensity of the current recession.
There are several possible explanations behind the lower than expected insolvency numbers: the first one being that Corporates’ are restructuring both operationally and financially in order to cut costs and borrowings so as to be able to ride out the recession. Second, the government’s tax deferment scheme is working, though there is a controversial debate brewing as to whether these agreements are simply storing up significant debt problems for already financially stretched businesses. Third, interest rates are at an all time low and are likely to remain so for some time yet and arguably the government has placed pressure on the banking community to retain existing, and extend new lending, facilities to business customers.