New firm to service border solvency cases

A new joint venture, Leonard Curtis Hughes Blake, has been set up to service the growing demand for cross-border restructuring, recovery and solvency cases.

The chartered accountancy firm Hughes Blake has teamed up with UK insolvency specialists Leonard Curtis Business Solutions Group to establish the firm.

Speaking about the environment which prompted the establishment of the venture and the extent of the opportunities which exist in the market, Neil Hughes, managing partner of Hughes Blake, said that while there are early signs of stabilisation in the Irish economy, there continues to be a requirement to recognise significant amounts of personal and commercial debt.

“The security on many outstanding loans is held against property in the UK,” he said. “In the case of Nama, very significant percentage of the value of its book is secured against UK-based property.” The firms have 13 offices across the UK and Ireland.

“Notwithstanding the new Irish personal insolvency system that will shortly be implemented we believe that it is likely that the majority of entrepreneurs who now find themselves personally insolvent will continue to temporarily relocate to the North or to the mainland UK due to the 12 month bankruptcy term there,” said Mr Hughes..

“As many Irish insolvent individuals have been living with their status for four years already, we believe that estimates of 21,000 Irish personal insolvencies in the first year will not materialise.”