Rescue Culture: Playing the Devil’s Advocate

In an article authored for Global Turnaround, Howard Morris, Amrit Khosa, and Hee-Chan Kang discuss the UK’s corporate insolvency and rescue regime, and whether “rescue culture” has gone too far.

As the article notes, “The second quarter of 2023 saw a total of 6,342 formal corporate insolvencies in England and Wales, representing a staggering 13% increase from the previous year. Yet only 157 were companies with a turnover of over UK£10 million. Despite the quarterly insolvency numbers being the greatest since the 2009 financial crisis, we have yet to see larger companies enter insolvency, and challenging times do lie ahead for many companies. High inflation and rising interest rates continue to impact business profitability and liquidity. Will these companies fail or will investors hungry for a return continue to throw them a lifeline?”

Read the full article (as originally published by Global Turnaround in September 2023).