According to PricewaterhouseCoopers, mid-market companies have been particularly hit by the rise in company insolvencies in 2002. As a raft of major corporate restructurings and profits warnings squeeze suppliers and trade partners, insolvencies in the financial services sector, for example, jumped by more than 100% in Q3 2002 (the most recent figures available) compared to the same period a year ago.
In contrast the number of companies entering receivership fell by 21% in the Q4 2002 compared to the same period a year ago. This reflects the established rescue culture among the UK clearing banks, which increasingly favour rescue and rehabilitation of larger companies rather than formal insolvency.
