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SNP calls for insolvency regulation

Published on 31 Dec 2009 under category: legal

The Scottish National Party (SNP) has called on the UK government to roll out changes to insolvency regulation in the country.

According to the party, current rules make it easy for administrators to "cash in" at the cost of creditors.

Figures compiled by the SNP suggest that the insolvency sector is making gains at the expense of the companies in administration.

Examples cited by the party include music retailer Zavvi, which owes creditors a total of £185 million - administrators Ernst & Young has taken fees of £3.2 million so far.

Mike Weir, SNP spokesman for regulatory reform, said: "The UK government must take a serious look at the workings of the insolvency industry which appears to be raking in a fortune at the expense of creditors."

He added: "This is clearly a pertinent and pressing issue in the current economic climate and the UK government must not shy away from investigating the insolvency industry and taking action."

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