Rescue Recovery Renewal (R3), the United Kingdom’s insolvency trade association, forecasts an increase in corporate financial bankruptcies over the near term. March 2022 data shows corporate insolvencies increased by 39% from February’s total. Furthermore, a 111% increase in the UK in corporate insolvencies was recorded between March 2022 and March 2021. R3’s data suggests third party funders may seek broader exposure to boost client acquisition.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Rescue Recovery Renewal (R3), the United Kingdom’s insolvency trade association, forecasts an increase in corporate financial bankruptcies over the near term. March 2022 data shows corporate insolvencies increased by 39% from February’s total. Furthermore, a 111% increase in the UK in corporate insolvencies was recorded between March 2022 and March 2021. R3’s data suggests third party funders may seek broader exposure to boost client acquisition.
R3’s research attributes 40% of March 2022 corporate insolvencies to Creditor Voluntary Liquidations, a procedure where directors close insolvent enterprises. The dramatic increase in 2022 corporate insolvency data forecasts an upward trend in the short/medium term, due to economic hardship for UK commerce. R3 says high inflation and low consumer confidence signals probable turbulent economic conditions.
R3 predicts that corporate insolvency rates are expected to provide third party investors in the UK with marketable restructuring opportunities.
