The late 80's/early 90's recession was a busy and challenging period for those in the insolvency world. Since then an extended benign period of economic stability has seen less formal insolvency work, with many practitioners turning their attentions to turnaround work or specialist areas. But one year into the credit crunch, are we seeing insolvency practitioners dusting off their licenses ready for big volumes of traditional statutory work?

Whilst commentators warned that the wave of cheap liquidity, allied to a cultural shift in consumer attitudes towards debt and ever increasing corporate deal multiples, would end badly, it was never clear what would trigger a meltdown or how serious it might turn out to be.

As widely reported, the credit crunch started as losses from complex financial products based on imprudent housing loans began to surface, and guidance on counterparty risk was dug from technical banking manuals. Few, expert and bystander alike, foresaw the speed at which long standing venerable institutions would be reduced to wreckage. The financial crisis has also hit at a time of unprecedented global energy and food inflation, doubling the impact on the 'real' economy. Indeed, the debate now is around just how serious the impact will be in terms of general business failures and unemployment.

So there must be an expectation that corporate recovery specialists will become busier over forthcoming months. We are already beginning to see businesses based on discretionary expenditure suffer. From a technical point of view, it will be interesting to see whether the trend of pre-packaged business sales continues, keeping business alive, or whether we will see a less controlled recovery environment.

Grant Thornton website: http://www.grant-thornton.co.uk/

The inaugural Insolvency and Rescue Awards 2008 took place at the glamorous Grosvenor House in London last Thursday. Hosted by comedian and TV presenter Dominic Holland (pictured) and attended by over 400 guests from the world of insolvency and rescue, 16 gongs were awarded to well deserving firms and individuals.

A wide range of companies entered the awards – from the Big Four to smaller regional partnerships – and it was a tough call for the judges. Ernst & Young swept the board, winning four accolades for its rescue work, including the complex administration of Metronet. Personal insolvency providers, business funders, solicitors, barristers and credit managers were among the other winners.

Of particular note was the Sabin award for outstanding contribution to the UK rescue culture, named after the late Insolvency Practitioners Association chief executive Nick Sabin. Presented by his wife, Lindsay Sabin, the award went posthumously to Des Flynn, the former inspector general of the Insolvency Service. Flynn steered the Enterprise Act through to the statute book, changing the culture of UK bankruptcy in the process. Frances Coulson, partner at Moon Beever, accepted the award on behalf of his family.

A full write up will be included in an awards supplement with Credit Today’s December issue.

Business Rescue Funder of the Year
Sponsored by: Hilton-Baird Group
Winner: RCapital

Business Rescue of the Year
Sponsored by: Hilco Appraisal Europe
Winner: Metronet (Ernst & Young)

Corporate Recovery Firm of the Year - Small Firms (up to 3 licensed IPs)
Sponsored by: Ashley Commercial Finance
Winner: Abbott Fielding

Corporate Recovery Firm of the Year - Mid-Sized Firms (3–20 licensed IPs)
Sponsored by: Edward Symmons
Winner: Leonard Curtis

Corporate Recovery Firm of the Year - Large Firms (over 21 licensed IPs)
Sponsored by: Hays
Winner: Ernst & Young

Debt Management Provider of the Year
Sponsored by: Money Tailor
Winner: Debt Advisory Line

Insolvency Litigation Team of the Year
Sponsored by: Blake Lapthorn
Winner: Moon Beever

Insolvency Legal Firm of the Year: Solicitors
Sponsored by: Bridge Business Recovery
Winner: Skadden
Highly commended Eversheds

Insolvency Legal Firm of the Year: Barristers Chambers
Sponsored by: Bridge Business Recovery
Winner: Maitland Chambers

Insolvency Manager of the Year
Sponsored by: Jardine Lloyd Thompson
Winner: Joanne Robinson, assistant director, Ernst & Young

Insolvency Practitioner of the Year- Personal
Sponsored by: Eversheds
Winner: Beverley Budsworth, managing director, The Debt Advisor

Insolvency Practitioner of the Year- Corporate
Sponsored by Moon Beever
Winner: Alan Bloom, partner, Ernst & Young

International Insolvency & Rescue Firm of the Year
Sponsored by: Capa
Winner: Skadden

Trade Risk Manager of the Year
Sponsored by: Chase Credit
Winner: Jon Bunyard, commercial director, Computacenter

Turnaround Practitioner of the Year
Sponsored by: Definitive Consulting
Winner: David Lovett, managing director, AlixPartners

The Sabin Award for Outstanding Contribution to the UK Rescue Culture
Sponsored by: Tenon Recovery
Winner: Desmond Flynn

Article courtesy of Credit Today