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Significant drop for Corporate Insolvencies

May 7, 2015 | Financial Saviour

It’s official, company insolvencies in England and Wales have fallen to their lowest since the end of 2007.

According to the Insolvency Service agency, latest statistics on businesses entering into formal insolvency in the first quarter of 2015 have dropped one percent less than the final quarter of 2014 and a whole 11% lower than the same quarter last year.

We were aware that the number of company insolvencies had been on the decrease since the beginning of 2014, but now with just over 4,000 companies entering formal insolvency throughout the first three months of 2015, the future for business is surely looking bright.

Further statistics highlighted even more drops in the number of various insolvency cases including creditors’ voluntary liquidations at their lowest since mid-2008, and just 93 company voluntary arrangements which is the lowest since 2007. The liquidation rate in the first quarter of 2015 also fell to its lowest level since the early 1980s at 0.5% of active companies.

Despite the positive decreases, it wasn’t all good news, however, as 2015’s first quarter still saw a total of 904 companies subject to a compulsory winding up order; lower than the same period in 2014 but up 9% from the previous quarter.

Similar were the figures of administrations in the first quarter of 2015 – 432 was a drop from the same period last year, but again up 9% on 2014’s final quarter.

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