The number of insolvent companies in England and Wales fell by 10% in the first quarter of 2003 compared to the same period a year ago, according to figures released today by the DTI and analysed by PricewaterhouseCoopers. The fall in company failures reflects the increasing trend towards a more consensual restructuring of debt, rather than formal insolvency proceedings. In total 4,159 companies entered insolvency in the first three months of 2003, a 13% drop on the previous quarter.
The changing attitude to business failure in the UK is highlighted by a sharp drop in the number of receiverships, which fell by 31% in the first quarter of 2003 compared to the same period a year ago. In contrast, the number of administrations and company voluntary arrangements, perceived as more collective rescue processes, increased by 3% over the same period.
