Manolete Partners plc (LON:MANO) have noted the potential for a spike in insolvencies later this year if R3 member survey figures hold true. In a report published on the R3.org.uk website it states that an overwhelming majority (93.7%) of respondents to a survey of members of the insolvency and restructuring profession carried out by the profession’s trade body expect corporate insolvency numbers to increase over the next year.
Breaking down the numbers it showed that more than half the respondents expect corporate insolvency numbers to be ‘significantly higher’ than last year and 37.6% think that it will be ‘somewhat higher’.
The survey found during the early stages of the pandemic demand for corporate insolvency procedures fell, as government support helped to keep businesses afloat, but all this could change.
R3’s North West chair Allan Cadman, said: “Despite the lockdown and the economic turmoil, government figures show corporate insolvencies actually decreased in April and May compared to previous months.
“Our members also told us that the enquiries they received were mainly about companies’ eligibility for state relief, rather than formal insolvency advice.
“This is, in no small part, due to the Government’s support measures.
“However, it’s clear from the survey that it’s a question of when, not if, corporate insolvencies increase, as the support available has deferred rather than deterred the rise you would expect in an economic climate like this.”
Manolete Partners has completed investments in over 450 UK specialist insolvency cases. They are renowned for an unparalleled knowledge of the Insolvency and Recovery sector.
