Insolvencies fall 20% as all sectors, except motor trade, see pick-up

Insolvencies among corporates fell by one fifth in 2013 compared with the previous year with all sectors, apart from the motor trade, seeing a pick-up, according to the website insolvencyjournal.ie.

However, as banks work through non-performing loans, there could be an increase in receiverships over the next 12 months, according to David Van Dessel, a partner at the consultancy firm, KavanaghFennell.

“Although I anticipate the incidence of corporate insolvency will continue to fall, I do not anticipate the drop will be significant in 2014, as I am of the view that the pillar banks, who are the probably the main bankers to our SME sector, have been forbearing of struggling companies during the recession and, to date, have been reluctant to appoint receivers,” said Mr Van Dessel.