Could your distressed firm be saved by insolvency solicitors?

Published on 27 May 2010 under category: legal

The acquisition of 'distressed' firms doubled in the north-east last two years, with one in six firms being bought after calling in insolvency solicitors.

New research for R3 by Experian Corpfin found that one in six businesses acquired last year had been subject to insolvency procedures, the Northern Echo has reported.

In 2008, the number was one in 12.

The north-east region outstripped the rest of the UK, where just over one in ten businesses were acquired after they were declared insolvent.

Commenting on the figures, Linda Farish of R3, said that they showed that firms had been given "a second chance of survival" despite having had to call in insolvency solicitors.

"While pre-pack administrations may account for some of these deals, others will be acquisitions by astute buyers taking the opportunity to pick up bargains while values are low."

Earlier this month, Ministry of Justice figures revealed that the number of winding-up petitions for struggling companies presented to courts increased in the first three months of this year.

There was a four per cent rise on the last three months of 2009, with 2,777 petitions presented in the UK.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.