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Archive for December, 2008

Recovery firm warns of Hard Times Ahead

Friday, December 12th, 2008

Bankruptcy and restructuring consultant, Tenon Recovery, has reported a steep rise in the quantity of companies needing help. The firm experienced a rise of virtually 200% in the amount of contacts from firms in the retail, eaterie, motor, property and leisure sectors, during Nov and December. Among the problems faced is a fall in profit markups as corporations compete for consumers’ money and Tenon speaker, Carl Jackson, cautions that the symptoms being seeing now are a predecessor to a potential pandemic of insolvencies in 2009.

Included in Tenon’s outline of the traits of a uneasy business are : a puny equity base ; low profit / losses ; leveraged frequently thanks to a current exchange ; puny management ; feeble management info systems ; reliance on one customer / shopper and fast expansion causing overtrading.

In the meantime , the governing body is reported to be considering a selection of new measures that might release lending. According to reports in the press, ministers are working on plans to provide guarantees for new lending, for example loans to tiny companies, mortgages and automobile finance.

Details of a plan that would charge banks a fee for the guarantee are anticipated directly.

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