Corporate Distress the New Growth Market

Posted on: 14.10.2010    09:16:35

On the day when the bonfire of the quangos is due to be announced with up to 200 expected to be given the chop the outlook for UK PLC is anything but healthy.

HMRC is tightening up on chasing slow payers with actions against defaulters up by 39% in the August/September period.

This is before the spending cut review to be announced next week that could be the death knell for the so called zombie companies hanging on either through concessionary bank or tax concessions in the hope of an upturn.

An increase in corporate administrations or straight liquidations is to be expected and could effect as many as 50,000 companies with a combined debt of £58m.

Moreover, the outlook for business sectors like steel, construction, tourism and recruitment looks grim especially as the remnants of state stimuli finally unwind.

 

Author: Chris Slay

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