Northern firms are "failing"

1 September 2010 | Category: News

Businesses in cities in the north of England are struggling, new figures released by the Insolvency Service reveal.

The city with the highest business insolvency rate in the country is Bradford, the figures show, with 0.6 per cent of business in the city failing.

Manchester is following close behind, with business insolvency rates of 0.57 per cent – a rise of 17 per cent for the first three months of the year, according to the new figures.

There’s better news for the construction industry across the UK, with a small drop in the total number of administrations in the second quarter, down from 87 to 86, compared with the first quarter. Construction companies are particularly vulnerable as problems with a project can lead to cost overruns.

KSA Group is helping a number of SME construction companies with sales ranging from £800k to £20m. These companies are all viable, but cost overruns or bad debts have pushed them towards insolvency.

However, struggling businesses that continue to trade are not included in the statistics, so the figures may not represent a true figure of the current situation, KSA Group marketing manager Robert Moore warned. “The actual statistics hide the true picture, as they don’t show how many companies are trading on a ‘stay of execution’ before the HMRC decides to call in their debts,” he said.

Source: www.insolvencynews.com

Nadir to face fresh creditor claims

1 September 2010 | Category: News

Asil Nadir faces the prospect of fresh legal action to recoup up to £375m claimed by his personal creditors following his return from northern Cyprus to the UK.

Nadir remains an undischarged bankrupt, and those working on behalf of creditors say they can seek to seize even those assets acquired or generated since his bankruptcy in 1991 and his unauthorised departure from the UK 17 years ago.

It has emerged that creditors have received little more than £70m. Out of the £2bn debts Nadir left behind, partners at PricewaterhouseCoopers and Deloitte have estimated that £500m went from Polly Peck to companies or bank accounts in Northern Cyprus and Turkey where creditors have failed to claim money.

They have recovered about £210m across the group, most from the sale of foreign businesses in the Polly Peck group including Del Monte, Russell Hobbs and several hotels.

Much of the rest of the outstanding debts went to support lossmaking operations, and reflected acquisitions that could only be sold at a loss.

Kevin Hellard, partner at Grant Thornton who is running Nadir’s personal bankruptcy, is studying reports Nadir had business interests and led an opulent lifestyle in northern Cyprus.

Nadir returned to the UK on a private jet last Thursday and is currently staying in rented accommodation in Mayfair at £20,000 a month and had to fork out bail money of £250,000.

Hellard told the Financial Times that since 1991 he has been able to secure and liquidate less than £1m in assets to pay off creditors owed £375m by Nadir personally, including the UK tax authorities and a range of banks.

The largest claim is from a group of creditors of Polly Peck, the holding company, which went into administration in 1990. Partners at PricewaterhouseCoopers and Deloitte handling the case estimate that £263m went to Mr Nadir or companies he controlled.

Sources: People and www.insolvencynews.co.uk

Fewer corporate insolvencies in June

20 July 2010 | Category: News

Fewer UK businesses went bust in June but the north-south divide in relation to insolvencies is growing, according to new figures.

The latest Insolvency Index from Experian shows that 1,771 UK businesses failed during June 2010, 13.4 per cent fewer than in June 2009 when 2,044 firms became insolvent. As a result, the year-on-year insolvency rate fell from 0.10 per cent to 0.09 per cent in June.

The index also shows that the overall financial strength score of UK businesses is improving, from 80.83 in June 2009 to 80.66 in June this year.

Smaller businesses with 11 to 25 employees saw the greatest year-on-year reduction in the insolvency rate, falling from 0.29 per cent in July 2009 to 0.20 per cent.

But figures for the north of England showed a growing divide with the south. At 0.14 per cent, the north east had the highest insolvency rate of the regions in June, with Yorkshire close behind at 0.12 per cent.

At the opposite end of the country, businesses in the south west saw a UK low of 0.07 per cent, while Greater London had an insolvency rate of 0.08 per cent.

Rolf Hickman, managing director of Experian company pH Group, said: “June’s data indicates that the UK’s business community as a whole is stabilising. Businesses in the north of England seem to be faring slightly worse than their southern counterparts across all industry sectors.”

Scotland was the only region in the UK to see an increase in the insolvency rate – up to 0.08 per cent from 0.06 per cent in June 2009.

Hickman added: “Although the data hints at some improvements, individual organisations are impacted in different ways. It is vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose them to."

Insolvency Service axes 50 investigators

15 July 2010 | Category: News

The Insolvency Service has swung the axe on 50 front line official receiver investigators in a move which is “tantamount to legalising corporate theft”, according to sources.

The mass job cut will mean that every regional office across the country will feel the loss of around three insolvency investigators.

It is believed the majority of investigators who have been made redundant were working within the corporate division.

Official Receivers typically investigate an average of 30-40 cases at any one time, and at the time of going to press no contingency plans had been drawn up by the Insolvency Service regarding the work load and cases under investigation by former staff.

One source familiar with the developments said: “Insolvency practitioners have complained before that the Insolvency Service wasn’t doing enough director disqualifications – and these actions will worsen the situation.

“Making these front-line cuts is tantamount to legalising corporate theft.”

Recent investigations by the Insolvency Service have led to a director of a failed solar company being disqualified for nine years after it was found he had run the business in a way that was detrimental to creditors and consumers.

Richard Curtin, partner at law firm Faegre & Benson, said: "These cuts are being made at a time which is going to be so busy for insolvency investigators and will mean delinquent directors will get away with it. In these austere times, insolvency isn't a sexy division for the government to pump money into."

The Department of Business (BIS) was the hardest hit by chancellor George Osborne’s “unavoidable” budget in May. Vince Cable’s department has been told it must make £636m of efficiency savings to tackle Britain’s ballooning deficit as the country enters an age of austerity. The 3,000 staff at BIS have already been informed of a voluntary redundancy programme to cut part of the £38m of administrative costs as ordered by Osborne. According to reports, up to one in four staff in some BIS operations are at risk.

The Insolvency Service is charged with the role to administer the current insolvency regime and investigate all compulsory liquidations and bankruptcies through the Official Receiver to establish why they became insolvent.

The Insolvency Service declined to comment on the redundancies and said it “was too early to talk specifics.”




Source: www.insolvencynews.com

HMRC gets tough on dodgy directors

15 June 2010 | Category: News

The number of directors of insolvent firms facing disqualification proceedings for not paying business tax has jumped 24 per cent in the year to March 2010.

A total of 813 directors had proceedings brought against them in court for non-payment of company tax in the year ending 31 March 2010, compared to 654 in the previous year, according to figures obtained by independent finance provider Syscap.

Separate figures from the Insolvency Service show that the number of company insolvencies declined by 17.8 per cent over the same period.

Disqualification orders ban individuals from being directors of a limited company or from being involved in the promotion, formation or management of a company for up to 15 years. Directors who have been disqualified have unlimited liability for the losses of any company that they have been involved with in contravention of the disqualification order and may also be criminally liable.

Syscap claimed the figures show that despite HM Revenue & Customs (HMRC) taking a less aggressive approach to collecting tax from distressed businesses, HMRC is increasingly prepared to instruct the Insolvency Service to take individual directors to court.

Philip White, chief executive of Syscap, said: “This is a huge increase in court proceedings against directors. It’s all the more shocking because the number of company insolvencies has declined sharply over the last year.

“These figures are a wake up call for directors of companies encountering cashflow difficulties. On the one hand HMRC is allowing companies to defer tax, but with the other it is taking an increasingly aggressive stance towards individual Directors who fail to meet their obligations to the taxman.”

He adds: “Directors often choose to pay suppliers over HMRC in the belief that this will ensure the immediate survival of their businesses. Continuing to trade while neglecting to pay HMRC is a risky strategy that could backfire if the company subsequently becomes insolvent.”

Syscap points out that HMRC is rejecting a higher proportion of applications for its Time to Pay scheme and is scaling back the amount of tax it is prepared to allow businesses to defer.

The firm claims that businesses unable to meet their tax obligations and who are not eligible for Time to Pay can still obtain credit to pay their tax from funders.

White says: “With HMRC making it harder for businesses to defer tax under Time to Pay and the government under intense pressure to maximise tax receipts, we may well see even more prosecutions of directors for failing to meet company tax obligations in the coming year.”


Source: www.insolvencynews.com

HMRC rejects £42m of 'Time to Pay' requests

18 May 2010 | Category: News

HM Revenues and Customs is toughening up its approach to companies requesting the chance to defer their VAT payments under the Time to Pay scheme.

HM Revenues and Customs is toughening up its approach to companies requesting the chance to defer their VAT payments under the Time to Pay scheme.

Figures reveal that HMRC refused £42m worth of requests to defer VAT payments in the first quarter of this year, according to information obtained by a Freedom of Information (FOI) request by IT finance provider Syscap.

HMRC rejected more than 11 per cent of applications during the first quarter of this year, more than double during the same period a year ago, according to the information obtained under the FOI. In 2009 HMRC declined just 5.3 per cent of company requests.

The previous Government's support in giving businesses time to pay their their debts to HMRC via the Business Payment Support Service (BPSS) has been widely acknowledged as having provided a lifeline to many businesses. However, as this scheme is squeezed, the level of corporate failures are set to rise.

Philip White chief executive of Syscap said: "SMEs are still finding it incredibly hard to borrow money from their bank to pay HMRC VAT so news that the HMRC refusal rate has shot up is worrying.”

White added: “GDP growth of 0.2 per cent [in the first quarter of the year] shows the economy is weak, not strong, and that more needs to be done to help SMEs, not less.”

HMRC recently introduced a rule on 6 April which means that firms seeking to defer more than £1m in tax payment must first provide an independent business review.


Steven Law, president of trade association R3, said: "Time To Pay has been a vital factor in preventing an expected spike in corporate insolvency numbers and no-one would argue that it should be removed suddenly."

However we supported HMRC’s decision to enforce an Independent Business Review on requests worth more than £1 million. At some point there will have to be a tightening in the system at requests for lower amounts as the scheme was always meant as a temporary breathing space rather than a long-term supply of credit.”


HMRC has insisted that the process for approving or turning down requests has not been made more rigorous and that each application is judged according to the circumstances of the firm making it. HMRC has disclosed it believes an IBR will cost as much as £75,000 with the average cost estimated at £42,500. The cost must be borne in its entirety by the business applying under “time to pay”.



Source: www.insolvencynews.com

Personal bankruptcies on the rise

17 May 2010 | Category: News

The number of people attempting to make themselves bankrupt jumped by a fifth in the first three months of this year, according to figures released by the Ministry of Justice (MOJ).

The figures show the number of bankruptcy petitions lodged in the courts by debtors rose 20 per cent from the previous three months to 16,348.

Bankruptcy proceedings started by creditors also rebounded, up by four per cent to 4,329 during the first quarter.
The MoJ said individuals and companies may have rushed through bankruptcy filings to escape the fee hike by the Official Receiver. Fees relating to The Official Receiver’s Deposit towards the costs of administering insolvency cases increased this year on 6 April for debtors’ bankruptcy petitions from £360 to £450, creditors’ bankruptcy petitions from £430 to £600, and company winding up petitions from £715 to £1,000.
An MoJ spokesperson said: “This created an incentive for companies and individuals to present petitions to the courts before 6 April and may therefore have resulted in the increase number of petitions being made in the first quarter of 2010 compared to recent quarters.”
However Mark Sands, head of bankruptcy at RSM Tenon, dismissed the notion that fees had an impact on the figures. He said: “I would be very surprised if it was the fees that affected the results – few people are even aware of the fees and I don’t believe the increase was well known by debtors.”
Sands pointed to the three per cent year-on-year drop in individual bankruptcy petitions and said this was likely to be a result of the introduction of Debt Relief Orders (DROs), which did not exist during the same period a year ago.
Debt Relief Orders (DROs), which were introduced in April 2009, allow consumers with debts of less than £15,000, and minimal assets or surplus income, to write off their debts without entering into a full blown bankruptcy.
Sands said: “Once the 5,644 DROs are taken into account we can see that 33,209 people chose to enter into a form of personal insolvency in this three month period, as opposed to being made bankrupt by a creditor. That means that a record proportion of 93 per cent of personal insolvencies were driven by people deciding that they cannot wait any longer."
He added: "Although the glass has started to look half full for the economy, it’s very much been drained of every drop when it comes to individuals’ personal finances. Months of job losses and decreased earnings has taken its toll on the public’s purse strings. We are likely to continue to see record numbers of people look to insolvency into 2011."


Source: www.insolvencynews.com

Insolvencies reach record levels

5 May 2010 | Category: News

Over 388 people entered insolvency every day during the first three months of this year, according to the latest figures from RSM Tenon Tracker.

In a bleak start to the year, the number of insolvencies also reached record levels in March, dashing hopes of an early recovery. There were 14,000 insolvencies in March, 16 per cent higher than the previous monthly record in November 2009. The number of personal insolvencies spiked during the first three months of the year, increasing by 15 per cent to 35,000 compared to the same period a year ago.

Mark Sands, head of bankruptcy at RSM Tenon, said: “The ‘debt-lag’, where monies owed have piled up over a series of months before insolvency hits, can last from anything between 9-24 months. The record insolvencies for March will partly be a hangover from Christmas, but it is more likely to be due to the ongoing effects of the financial crisis.”

Individual voluntary arrangements (IVAs) however fell by 16 per cent compared to the previous quarter. However, Sands said the fall is not indicative of an overall drop in insolvencies, but that the difficult economic climate has made it harder for people to make regular monthly repayments.

Bankruptcies and Debt Relief Orders (DROs) rose by 8 per cent and 6 per cent respectively “Around half of all personal insolvencies are bankruptcies so this apparently modest 8 per cent increase actually translates to more than 1,300 extra people going bankrupt in the last quarter.”

Source: www.insolvencynews.com

160,000 companies in financial distress

5 May 2010 | Category: News

Over 160,000 companies are experiencing significant or critical financial distress, according to figures out today from Begbies Traynor.


In its latest Red Flag update, which highlights troubled companies, the business recovery specialist reported the number of firms experiencing significant financial problems has jumped by 20,074, or 14 per cent, to 161,601 in the first three months of this year.

Begbies Traynor estimates that seven per cent of the increase is the result of a trade creditors becoming more aggressive, with an increase in court actions evidence of their growing willingness to take action against their debtors. The remainder of the increase could be attributed to normal seasonal uplift.

The survey shows that distressed UK businesses owe over £55bn to creditors, suppliers and service providers putting them at a severe risk of defaulting.

Ric Traynor, executive chairman of Begbies Traynor Group, said: "While the economy appears to be showing positive signs of recovery, the magnitude of the liabilities still at risk of default represents a serious risk to creditors, indicating the potential far-reaching impact of these levels of distress. It is this ripple effect which represents a real threat to a sustained economic recovery."

The sectors worst affected in the first quarter of 2010 include construction, in which companies experiencing significant or critical financial problems were up 30 per cent, professional services up 19 per cent, property services up 42 per cent , recruitment up 18 per cent and retail up 19 per cent on the previous quarter.

Traynor added that companies will be put at an even greater risk should interest rates rise during the economy’s recovery. He said: "Low interest rates have been one of the principal reasons why business failures have not yet reached the peak levels many feared this savage recession would cause."

Experience of previous recessions shows that the recovery phase of the economic cycle has represented the greatest challenge to vulnerable small and medium sized businesses (SMEs), meaning that the inevitable withdrawal of the government's Time to Pay scheme could topple more firms.

www.insolvencynews.com

Rent deadline threatens retailers

24 March 2010 | Category: Articles

INDUSTRY WARNS MORE BUSINESSES COULD COLLAPSE

The high street is bracing itself for a wave of retail collapses this week as a huge rent deadline looms.

Wednesday will be one of four so-called “quarter days” where rents have to be paid three months in advance, a system seen by many retailers as archaic.

Richard Fleming UK head of restructuring at the KPMG, said: “The March rent quarter date may be the nail in the coffin for retailers who have not traded well over the past few months.

“Creditors effectively have to decide now whether to support businesses now through to the end of the year."

High profile retail magnates including Topshop boss Sir Phillip Green have been lobbying the government for a change to the system, but until it is overhauled this rent deadline could spell the end for many business who are already teetering on the brink due to recessionary pressures.

Many retailers are currently in the process of negotiating with landlords a switch to monthly rent payments to bolster cash flow. Other solutions include disposing of empty or underperforming stores, through company voluntary arrangements (CVAs).

Rarely seen until the recession, CVAs have become more common as businesses face the threat of failure. They allow companies under threat of administration to renegotiate debts with unsecured creditors but some landlords regard them as a tool to escape individual lease liabilities.

Bankruptcy Petition Fees to Rise

2 March 2010 | Category: News

Indebted borrowers will find it more difficult to go bankrupt from April as the Government is raising its bankruptcy fees by £90.

The Government-backed Insolvency Service is due to raise its bankruptcy petition fees from £360 to £450 from April 6, even though the cost of administering a bankrupt has not gone up.
There is also an additional court fee of £150, which can be waived if a debtor is on benefits. Otherwise the total cost of going bankrupt is now a substantial £600.

One debt campaigner believes this will make it harder for people who cannot repay their debts from turning their lives around, and also believes this is a cynical ploy by the Government to reduce insolvency figures at a time when they are at historic highs.

Those who cannot repay their debts but can also not afford bankruptcy are often forced into informal debt plans, called Debt Management Plans (DMPs) – figures for which are not recorded or published by the Government – which can take decades to clear or even partially pay off.

Mike Thomas from debt advice website debtwizard.com said: 'These people will have to stay in DMPs for decades or they will duck and dive and hide from their creditors. For their own well-being it would be better to allow them to go bankrupt. I've met some people who are on the verge of suicide over this. For the sake of the economy as well, it is better to allow these people to start living productive lives again.'

The Insolvency Service said it is raising its fees as the economic downturn – and the fall in property prices in particular – has meant it is unable to recover enough money from debtors to cover the £1,715 it costs to allow them to go bankrupt.

A spokeswoman said: 'The economic downturn has reduced asset values, especially property, which means a greater proportion of cases don't generate enough money to cover the fee. This has meant that within the overall fee structure, we have had to ensure that more cash is realised earlier in the process. This has led to increases for some but will ensure that the cost of the regime is paid partly by the debtor and partly by creditors.

'Over the last year, the average unsecured debt in debtor petition bankruptcies has been around £33,000. Even with the new higher petition deposit cost, it is not unreasonable to expect those getting the benefit of writing off this debt to pay a proportion of the cost.'

She points out debtors can also turn to new quickie bankruptcies called Debt Relief Orders (DROs), which only cost £90. Debtors must have assets of less than £300, although the Insolvency Service has recently proposed allowing people with pension pots worth over £300 to apply. They must also have debts of less than £15,000 and, given that the average bankrupt has debts of £33,000, this will prevent many from applying for a DRO.

Source: www.thisismoney.co.uk

Bloodbath coming on the High Street - R3

3 December 2009 | Category: Articles

The retail sector is set for a repeat of last year’s clear-out on the high street, with over 20 household names likely to disappear early next year, according to insolvency trade body R3.

In the first few months of 2009, around 22 well known high street retailers went into insolvency. 23 household names face the same fate in the first few months of 2010, a recent survey of R3’s insolvency experts predicts.

Reflecting on why the New Year period is so devastating for retailers, 90% of R3 members say retailers deliberately delay starting insolvency proceedings until the New Year, hoping they will recoup the money over the festive period;
More than half of insolvency experts (61%) believe creditors also hang back, hoping they’ll receive higher returns due to increased takings over Christmas;
Compounding these factors, 76% of insolvency experts believe rising unemployment will result in less consumer spending. 86% predict this decrease in spending will in turn push many retailers into insolvency in early 2010.
Signs of economic recovery are also unlikely to help retailers - 85% of insolvency experts believe this will prompt creditors to start acting more aggressively, as assets rise in value. With the VAT increase in January, the first quarter of 2010 looks bleak.

Commenting, Peter Sargent, President of R3, says:

“Rising unemployment and decreased spending in the lead up to Christmas coupled with heightened creditor aggression in the New Year leaves the retail sector facing another bloodbath.

“While it would be comforting to think that the worst of the downturn is over, it’s worth remembering that insolvency peaks after a recession ends.

“We urge retailers to seek advice early when there is a better chance of rescue, rather than desperately clinging on, hoping that Christmas will cure all ills. The recent case of creditors agreeing a CVA in the case of Blacks Leisure shows there are insolvency and rescue procedures available to stave off liquidation. These procedures could help many businesses currently in the ‘at risk’ zone”.

Source: www.insolvencynews.com

Gordon Ramsay feels the pinch

1 December 2009 | Category: Articles

Two of Gordon Ramsay’s companies have been given weeks to settle debts to HMRC or face liquidation. Four of the celebrity chef’s companies were taken to court last week and faced winding-up petitions from the HMRC. Two of the four petitions were adjourned to give the companies time to settle undisclosed debts. Gordon Ramsay Plane Food – which operates his restaurant at Terminal 5 - was given 14 days grace to allow for a cheque to clear, while Gordon Ramsay Maze Ltd was given 63 days to pay off its debts. Two petitions were dismissed.

Source: www.insolvencynews.com

Quarterly insolvency stats out

11 November 2009 | Category: Articles

PricewaterhouseCoopers LLP's analysis of last week’s national corporate insolvency statistics found that the number of corporate insolvencies in quarter three of 2009 has shown a decrease of 7.2% in overall numbers since the last quarter; however the numbers are still an 11% increase on the same quarter of last year and remain at a ten-year high.

The number of personal insolvencies in England and Wales in the third quarter rose by 6.6% from the last quarter to 35,242. This is an increase of 28.2% on the same period a year ago, a record high.

In total, 6,114 businesses across England and Wales entered into insolvency in July, August and September of this year. Within these numbers, there has been an increase in receiverships which are particularly relevant in distressed real estate situations. Comparing the first three quarters of 2009 against the first three quarters of 2008, we are seeing an increase of 32% in total numbers suggesting 2009 is looking to be a watershed year for insolvencies.

Mike Jervis, partner in the business recovery services practice at PricewaterhouseCoopers LLP, commented: "There is no question that UK companies have been hit very hard by the recession, but now is not the time to relax. Experience shows that there is a spike in the number of businesses going bust as an economy recovers and companies need to remain obsessively focused on costs, cash and turnover if they do not want to become one of those statistics."

Source: www.insolvencynews.com

Insolvency figures expected to rise

6 November 2009 | Category: Articles

The number of low income households declaring themselves bankrupt is expected to push the number of personal insolvencies to more than 30,000 again, when figures for the third quarter of the year are released later today.

In the three months to the end of June there were 33,073 individual insolvencies in England and Wales. About 19,000 of these were bankruptcies and more than 12,000 were people entering individual voluntary arrangements (IVAs), a relatively expensive form of repayment plan.

A further 2,000 people took out a debt relief order (DRO), a cheaper form of bankruptcy for people on low incomes introduced in April. These allow those with debts of less than £15,000 and assets of less than £300 to declare themselves bankrupt for a fee of £90, rather than the usual £510.

While insolvency experts expect the number of bankruptcies to be broadly the same as the previous quarter, they predict that the number of DROs will have increased significantly.

Alec Pillmoor, head of personal insolvency at accountancy firm Baker Tilly, said: "We are expecting the number of DROs to have drastically risen to around 4,000. As people learn more about them, they see them as an increasingly viable alternative to bankruptcy to help them sort out their financial problems.

"Add to this an expected rise of 10% in IVAs then you begin to see that the recession isn't keen to relax its grip over our purse strings."

Louise Brittain, partner in Deloitte's Contentious Insolvency Group, said she also expected the orders to boost the total figure of insolvencies to more than 30,000 again.

"This figure is staggering, and unfortunately the end is not in sight," she said. "I fully expect that by the year end, 2009 will have broken all personal insolvency records with the total number of petitions likely to exceed the 130,000 mark."

The number of failed IVAs is also expected to fuel bankruptcy numbers in the new year, with as many as one in five debt repayment plans falling by the wayside, according to debt charities.

Source: www.guardian.co.uk © Guardian News & Media 2009

John Barnes has bankruptcy order rescinded

27 October 2009 | Category: Articles

John Barnes, the former England footballer, has had a bankruptcy order against him rescinded.

The ex-Liverpool winger must settle an unpaid tax bill by November 9 - when his case is heard by the High Court in London - for the bankruptcy to be fully discharged.

The amount of unpaid debt has not been released but Mr Barnes said he would pay the bill himself, contrary to reports that others would pay it for him.

Barnes was sacked as manager of Tranmere Rovers FC earlier this month.

The football pundit - who appeared on the BBC's Strictly Come Dancing in 2007 - was made bankrupt by a Liverpool court on October 14 because of unpaid tax.

He insisted it was an oversight and the money would be repaid quickly.

His solicitor, George Castro, said: "It was widely reported last week that HMRC had obtained a bankruptcy order against John Barnes.

"My client is delighted to announce that the Bankruptcy Order has now been overturned by the High Court.
"John Barnes was not and is not insolvent and my client would like to thank the Official Receiver and the case workers at HMRC for helping to resolve this unfortunate situation as quickly as possible."

An Insolvency Services spokesman confirmed the order was rescinded by a court last Friday - saying: "It's not very common," for an order to be overturned so quickly.

In March, the father-of-six told the Daily Telegraph: "I don't like dealing with taxes of course.
"I just hate not having enough money. Apart from that, I don't like dealing with bills and never have done. I let my wife Andrea deal with them.

"I don't even like opening them. A few times my credit card has been declined when I've been travelling abroad.

"Then I have to get creative about paying the bill and have to really root around. That's much more satisfying than just having it come easily."

Article by: http://www.telegraph.co.uk
Source: http://www.telegraph.co.uk/sport/football/news/6442035/John-Barnes-has-bankruptcy-order-rescinded.html

Worst is yet to come for insolvencies

20 October 2009 | Category: Articles

Recovery and restructuring company, Begbies Traynor, is forecasting a difficult time for businesses next year.

Its report titled ‘Red Flag Alert’ is a monitor of early warning signs of company distress and its latest report reveals that during the July to September 2009 period, 134,000 businesses still showed “material signs of distress” with the engineering and recruitment sectors being the “most impacted by adverse actions” in the quarter.

Begbies Traynor said that the UK is in the midst of a double-dip recession and the recession of the 1980s saw a brief rise in business confidence before deteriorating again in 1982.

The news comes despite the number of businesses failing in the third quarter falling by 14% to 149,543 compared with the same period a year earlier.

Ric Traynor, executive chairman of Begbies Traynor, comments: “The third quarter Red Flag Alert statistics demonstrate that the UK may be in the eye of the storm. The well-intentioned Government efforts to prop up struggling companies may provide a necessary lifeline in the short-term, but will ultimately prove futile in many cases.

“Both banks and trade creditors are also holding off wherever possible in the hope that business fortunes may improve, but Begbies Traynor supports the view of many leading economists that the UK is currently at the midpoint of a ‘W’ shaped recession.

“Experience of the last four recessions tells us that unemployment levels and corporate and personal insolvencies are lagging indicators, and thus seem certain to rise in 2010,” concluded Mr Traynor.

Article by: Kay Murchie
Source: http://www.financemarkets.co.uk/2009/10/20/worst-is-yet-to-come-for-insolvencies/