Posts tagged 'Insolvencies'

(Possibly) balance-sheet insolvent issuers, rejoice

Some light securitisation reading on Thursday; actually, more like some general ‘how much of western capitalism might be insolvent, anyway?’ reading.

It’s the UK Supreme Court’s judgment in the the Eurosail case.

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Insolvency Service in the red, but it’s a good thing! Sort of. Maybe. Or no. Actually no.

Adding to the list after doctors who smoke, psychologists with serious family problems, and engineers who can’t figure out how to work the lights: an organisation that handles insolvencies in the UK that wouldn’t be able to stay afloat were it not for £89m of “rescue cash” between 2008 and 2012.

Go on, have a giggle before we get to the serious part… Read more

UK business failure rate higher than thought

Companies are going out of business at a much faster rate than headline figures would suggest, the FT reports, with new data from Companies House raising questions about the anticipated pace of economic recovery. According to data from the Insolvency Service, only 0.7 per cent of active companies went into liquidation in the first quarter of 2011 compared with 2.6 per cent in 1993 as Britain was emerging from its last recession, and an average rate of 1.3 per cent over the last 25 years. These data have increased policymakers’ hopes that there is a decent amount of unused capacity in the economy.

Southern Cross landlords accept rent cut

Southern Cross’s landlords have agreed to take “significant” long-term rent cuts to help the embattled care homes operator avoid insolvency, the FT reports, and will avoid any home closures in the next few months. The 80 landlords also agreed on Monday to lobby for other creditors to “share the pain” of Southern Cross’s restructuring, and for the board to be more accountable to creditors as well as its shareholders. Landlords will be free to replace Southern Cross with other care operators, but a source close to the talks emphasised that no homes would close. Separately, it emerged that Southern Cross plans to impose new contracts on its staff, with any who refuse the new terms subject to dismissal without redundancy pay.

The Fed can’t go bankrupt. Anymore.

There’s been much debate about the possibility of the US central bank going broke.

Forget it. But not because of the Federal Reserve’s fiscal position, per se. Read more

The ECB’s technical insolvency

€60bn worth of covered bonds + €70bn of government bonds = €130bn of potential problem assets on the European Central Bank’s balance sheet.

A 1 per cent interest rate increase at a 3 per cent coupon with an average of seven years maturity makes just under a 5.32 per cent loss rate — which is quite a rough (but conservative) estimate by German financial consultant Achim DübelRead more

One man’s crisis is another’s opportunity…

Company failures in the UK jumped 56 per cent in the first quarter of 2009, according to statistics from the Insolvency Service. But at least some are using the trend to carve out some creative business concepts:

Credit Munch cafe, King Street, Hammersmith Read more

Insolvencies on the rise

Third quarter UK insolvency numbers are out from the Insolvency Service confirming the grim reality facing small business.

The numbers show 4,001 liquidations in the quarter, an increase of 10.5 per cent on the previous quarter and a 26.3 per cent on the year. Read more