Legal experts debate future of business insolvency

Experts from five of the region’s leading law firms have been discussing the future of the business insolvency regime at an event hosted by the north east arm of insolvency trade body R3.

Representatives of Ward Hadaway, Dickinson Dees, Eversheds, Watson Burton and Clarke Mairs outlined recent developments in the sector and the likely implications for business of changes to the insolvency regime that are due to come into effect later in the year.

The event comes at a time when a new survey of R3 members found the majority of them believed that the full impact of the recession on the business community was yet to be felt.

During the last recession, the peak for liquidation was 1992, some three years after the recession had started, and R3 expects that this lag will again be repeated this time round.

Jim James, outgoing north east regional chairman of R3 and head of the Insolvency and Corporate Recovery Unit at Newcastle-based law firm Ward Hadaway, says: “The impact of the recession has naturally seen corporate insolvency and all the issues related to it, such as redundancy, employment rights and contractual arrangements, become far more prominent on the regional and national business agenda.

“The recent announcement of the official end to the recession does not mean that all the problems caused by it have worked their way through –  and as hard as insolvency professionals can work to try to save companies and safeguard jobs, we fully expect the number of businesses entering administration to continue to grow for some time to come.

“The insolvency regime is evolving all the time, both through the introduction of new Government regulations and the impact of case law, and the discussions at our event will help R3’s regional members stay fully up-to-date with the latest changes.”
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For further information please contact:
Julian Christopher, Footprint Public Relations, t: 07891 005034
e: julianchristopher@btinternet.com

Addy Frederick, R3 Communications Officer
t: 020 7566 4217  m: 07825 679 462  e: addy.frederick@r3.org.uk

Notes to editors:

  • R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners from all over the UK.
  • R3 comments on a wide variety of personal and corporate insolvency issues. Please contact the press office, or see www.r3.org.uk for further information.
  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
  • R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals.