Restructuring & Insolvency Manager Claire Mateer takes a look at the insolvency statistics for March.
Until 17th April creditors have been unable to issue winding up petitions against companies in Northern Ireland as a result of restrictions arising from the Covid-19 pandemic. With the recent change, will Northern Ireland see a significant rise in corporate insolvencies?
Looking at the figures for England and Wales, where restrictions were lifted on 1 April 2022, we can see that the number of corporate insolvencies has reached their highest level in the past three years. In fact, they have increased by over 80% to 2,457 compared to the month immediately preceding the pandemic.
Only time will tell, but it seems likely that here in Northern Ireland we should be expecting a similar spike in corporate insolvencies in the coming months. The restriction on the presentation of petitions had allowed struggling companies to avoid the threat of winding up but now, with the pressure of the creditor winding up route recommencing, together with the continuing rising costs of doing business, this may be the final straw. Directors of those struggling companies should take professional advice as early as possible as there may be options to rescue a company which has a solid core business to protect.
To discuss any aspect in more detail contact Claire Mateer, Manager, Restructuring & Insolvency E: clairemateer@bakertillymm.co.uk Tel: 028 9032 3466