Indicating that the British economy continues to remain turbulent, more than 140,000 companies in the country experienced significant financial problems in the fourth quarter of 2009.
"Over 140,000 companies experienced significant and critical financial problems in fourth quarter 2009; 6 per cent higher than in third quarter 2009 but 14 per cent lower than the same period in 2008," Begbies Traynor, a leadiing business restructuring entity, has said.
The report pointed out that the country is seeing "high levels of corporate distress" despite the positive effects of government's fiscal stimulus including quantitative easing and lower tax rates.
According to Begbies Traynor, creditors now are having a more lenient approach towards companies compared to the days of the failure of American major Lehman Brothers in September 2008.
A more lenient approach among creditors, compared to the near panic to recover debts and preserve cash amidst the chaos a year ago when Lehman Bros and other major failures almost stalled world financial markets.
Noting that the UK Treasury remains one of the principal creditors in many insolvencies, the report said once the current schemes -- which provided a lifeline to many businesses -- is finished, there would be a "significant rise in company failures –- most probably from third quarter of 2010 onwards".