LONDON, 10 October 2007 – Crisis in credit markets is likely to drive a sharp increase in corporate failure, according to a report released today by Kroll.
“There is heightened market expectation of a significant increase in corporate restructuring, and indeed insolvency, as businesses burdened with leverage rapidly struggle with an onset of less benign economic conditions and higher interest rates,” says Kroll in its Boom, Bang or Bust? report, which has been issued to mark Kroll’s twentieth anniversary in the UK.
One of the big questions the UK faces is whether these businesses will go to the wall or be propped up. The report reveals that, “many [executives] feel that the twin crutches of liquidity and stability have consistently acted to prop up businesses which otherwise would have collapsed.” ...
Media and Press Enquiries
Suzanne Ivory
Hill and Knowlton
44 20 7973 5954/ 07738 351 103
Sara Turner
Hill and Knowlton
44 20 7413 3025 / 07974 400 021
Media Coverage
- CNBC:
Big Bang Remembered - Bloomberg:
Credit Market Turmoil Will Cause More Bankruptcies, Kroll Says - Financial News:
Debt Levels Threaten UK Corporates - The Independent on Sunday:
The Market Detective and Why We Should Feel Spooked - The Guardian:
Gumshoe of Wall Street on Trail of the Corporate Sociopath
