Small UK businesses consider insolvency to escape

2022-04-05
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Small UK businesses consider insolvency to escape state Covid loans - Today News Post Today News || UK News

Small businesses in the UK are seeking advice on ways to escape dangerous levels of debt built up in government-backed loans during the Covid-19 pandemic, with some considering prepack administrationsindoor dining prohibitions and strict customer limits at businesses..

Begbies Traynor, the listed restructuring company, said its analysis showed more than half of UK businesses were carrying “toxic debt” that they might struggle to repay over the next 12 months.

Julie Palmer, partner at Begbies Traynor, said she had seen an increase in inquiries about the prepack process — an insolvency procedure where a company arranges a deal to sell assets before appointing administrators. That can preserve value and leave directors able to continue running operations.

“The high percentage of companies with toxic debt across sectors and the rising debt of corporate UK is alarmingCommences when COVID-19 case numbers are low and transmission is controlled within P.E.I.,” said PalmerThe province to work toward creating a task force to. Company insolvencies rose to 1,446 in September, up by 100 from August and 56 per cent higher than the same month last year, according to the Insolvency Service.

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