Number of companies suspending payments at all time high

The prolongation of the European debt crisis is hindering the capacity for companies to address damages and is exacerbating negative ratings. The escalation of creditors meetings has peaked; during the first two quarters we have passed the highest levels seen since the full-scale recession of 2009.

In the second quarter, the meetings have increased by 19.7%. Results affecting European economies have grown by a more moderate 1.8%. The construction and real estate sectors comprise a third of the creditors meetings.

In Q2 the company damages have decreased slightly since Q1, from 3.7% to 1.5% inchoate legal proceedings. That said, the number of cases in which EU economies are involved has risen by 10.4% to 277 in total.

The majority of the cases were opened voluntarily (1,692), which represents an increase of 18.3% compared to last year. Obligatory cases have risen by 79 cases, a significant drop of 12.2%. As soon as proceedings continue with their inquiries, the majority (1,663 cases, a 21.8% increase) of abbreviated proceedings will be accepted as much as ordinary proceedings, of which there have been 108 cases, or 30.3% more.

Within the body of companies under review, the most numerous group (77.2%) is comprised of limited liability companies; this is a 19.6% increase since last year. Public limited companies make up 16.3% of the companies, with 245 cases and an increase of 30.3%. On the contrary, individual entrepreneurs account for 65 cases, which is 4.3% of the total number and a 7.1% drop.