This title is available as part of LexisLibraryFind out more or request a trial
The Times has published an interesting piece entitled "Advisers rake in £3bn from Lehman Brothers, Woolworths and other failed firms." The article makes interesting reading. Perhaps of more relevance though are the reader comments. At least one Insolvency Practitioner (IP) seems to have entered the fray. The Financial Times has also reported on a similar issue but with particular emphasis on Begbies Traynor.
One counter argument to these accusations of profiteering, and allegations of fat cat behaviour, could be to focus on the value that the insolvency industry brings to the UK economy in rescuing viable businesses. In terms of the value of the insolvency industry it is important to consider evidence. The Association of Business Recovery Professionals (R3) commissioned some independent research by the Centre for Economics and Business Research Ltd (not to be confused with Cambridge University's Centre for Business Research) in 2008 into the insolvency industry. The R3 research noted that the UK insolvency industry:
"employs 12,700 people directly, including 1,744 licensed insolvency practitioners, in 714 firms
Our research demonstrates that jurisdictions, like the United Kingdom, that treat creditors appropriately in times of business difficulties are the most likely to be prosperous in the longer-term."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...