Even if there is not an immediate insolvency risk
, in practical terms this could affect their credit rating, making it harder for them to raise finance, or their ability to win future work since in many formal tendering processes, as balance sheets are used as a part measure of their stability.
THE technology sector in Yorkshire has seen a marked rise in its relative insolvency risk
, a survey has revealed.
BANKING AND CREDIT NEWS-May 27, 2015-Bailout chief warns of insolvency risk
M2 EQUITYBITES-May 27, 2015-Bailout chief warns of insolvency risk
Research based on either a short sample period or a long sample period that does not take into account the impacts of the changing market and economic situations lacks the ability to identify factors that are effective in signaling insurers' insolvency risk
and remain robust under varying market and economic situations.
Latest figures compiled by insolvency body R3's Midlands branch show that the West Midlands manufacturing and construction sectors are more financially stable than many of their UK peers, with around one in five (18 per cent) and one in four (25 per cent) respectively having an above normal insolvency risk
, both below the UK average.
There is some suggestion in the industry that future mergers are likely in order to reduce insolvency risk
We show that asset encumbrance can increase insolvency risk
when the fraction of encumbered assets is sufficiently high.
Coface added that only 25 percent of the Romanian enterprises run a small insolvency risk
The ministry also reported that the financial ability of the utilities to meet their obligations is "continuously reviewed," and that "the insolvency risk
of large utilities was rather little even in the (recent) difficult economical environment.
If insolvency risk
is high in agri credit, then banks can help farmers to improve their repayment capabilities as governor state bank of Pakistan (SBP), Yaseen Anwar, said, "banks need to create credit absorption capacity of farmers through adoption of best modern farming practices, development of storage and marketing systems and resolution of other real side issues.
Critics of these transactions claimed that the high leverage typically associated with these deals would lead to short term performance horizons, reductions in employment, and increased insolvency risk
particularly in an economic downturn.