Insolvency
INSOLVENCY Who’s who INSOL Europe is the European organisation of professionals who specialise in insolvency, bankruptcy and business reconstruction and recovery. There are currently 1100 individual members from 30 different countries, and each of them has a special interest in European cross-border insolvency and restructuring. Chris Laughton, president of INSOL Europe and partner at Mercer & Hole,
concerned with bank regulation. Banks are looking to
of the insolvency industry in the UK. There were fewer corporate insolvencies
have bad loans on their books.
noted that the recent recession is seen as different to previous ones by members than expected, compared to previous recessions.
“This was a financial crisis and as we all now know, it was to some extent bank
led,” explained Mr Laughton. “The banks have been very sensitive to the whole financial situation for two reasons: i) political; and ii) banks’ balance sheets.
“The political point is relatively straightforward. When banks are being
as bashed as they have been it really doesn’t go down too well for them to be making a lot of insolvency appointments.”
Mr Laughton noted that the financial point is more significant and
strengthen their balance sheets, and therefore don’t want to “Clearly if one of their customers goes into a formal
insolvency proceeding, it’s pretty difficult not to recognise that as a bad loan. If, on the other hand, they have a com-
pany that is going through some stress and couldn’t afford to pay if it was demanded, because base rates are still at
half a percent it’s not that difficult for the stressed company to keep going provided its bank isn’t pushing it too hard.
The banks aren’t pulling plugs on companies because they
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