With the barring of commercial landlords issuing Statutory Demands and Winding Up Petitions against commercial tenants until at least the end of the year, as well as other measures, it is perhaps not unsurprising that there has been a 9% fall in insolvencies from Q3 2020 compared to the previous quarter.
The Insolvency Services has published the latest business insolvency figures for Q3 2020 which indicate a 39% fall in number to 2,672, down 9% on Q2 2020, and down 39% on Q3 2019.
Commenting on the figures R3 President Colin Haig said “The corporate insolvency numbers in Q3 are lower than even the figures seen in Q2, after lockdown came into effect, and are another reminder that – whatever the impact of the pandemic on companies – it is yet to be fully seen in the insolvency statistics.”
“The figures demonstrate that the support Government has provided to businesses, from providing a range of emergency loans to suspending winding-up orders and stopping commercial evictions, is helping keep many companies afloat during this period of economic turbulence.”
“Our members are telling us that they have returned to receiving requests for insolvency and restructuring advice and support, after a flurry of requests for advice about the Government’s support measures at the start of the pandemic.”
“Despite the Government’s efforts, there are likely to be a number of directors of businesses who are in a worrying position because of COVID – many of whom would have little cause for concern if the pandemic hadn’t happened, as their businesses would most likely have remained profitable.”
Samantha Keen, Turnaround and Restructuring Strategy Partner at EY said “The latest corporate insolvency figures suggest UK businesses have, so far, been able to keep going amid the challenging environment caused by COVID-19.”
“However, the figures don’t tell the full story and shouldn’t be taken as a signal of resounding resilience. The statutory insolvency framework has been altered – and in some parts suspended – by the pandemic, while on-going government schemes have played an important role in supporting businesses.
Where the service of legal documents eg order to attend Court, is permitted however, from a process servers viewpoint these could,under the current climate, be more readily served personally due to more people working from home. In addition, potentially more people being at home having say been put on the furlough scheme, could also be beneficial to the issuer of the papers. There is not always a specific requirement for personal service but ultimately it is most probably the best form of service.
So even though we are in unusual times, legal process continues, where it is permitted.
Source: Credit Connect