Corporate insolvencies have risen again, but not as much as expected, according to Restructuring Works’s third quarterly Business Stress Report.

The new numbers raise the question of whether insolvencies have peaked, or if this is the calm before the storm. 

“I think the research is showing a pause in the rise in insolvencies and there is worse to come,” said Cliff Sanderson, director at Restructuring Works. 

He put this somber prediction down to the significant increase in enquiries from companies in financial distress, and well as that a “reasonable proportion” of companies currently being offered latitude would eventually fail. 

“So it will take some time but ultimately we will see a further material rise in the number of insolvencies,” he said.

Key findings from the report were threefold. 

Firstly, the value of All Bank New Asset Impairment Charges to March was down from December 2008. 

And, the number of companies entering some form of insolvency administration was higher than the prior year, but off March 2009’s peak.

Then, after the 1987 stock market crash bad debt increases lagged for around 18 months and only peaked in 1992.