Receivership, personal bankruptcies and examinership are just some of the insolvency-related measures expected to increase this year as the market remains volatile and the economy shows little sign of turning around, according to a new report.
In its report titled 'Corporate Restructuring and Insolvency in Ireland 2011', insolvency accountant KavanaghFennell paints a bleak picture for the year ahead, and looks back on a record 1,638 insolvencies last year, up 7pc on 2010.
In an outlook for 2012, company partner Tom Kavanagh said many of the trends that appeared in 2011 would continue to grow.
"Corporate receiverships are at a record high and the level of enforcement by the banks is not expected to decrease anytime soon.
"We may see a move to the necessary financial restructuring of over-indebted trading entities," he added.
Personal bankruptcies should also surge during 2012, Mr Kavanagh claimed, especially once the bankruptcy legislation was amended to be less harsh than it is currently.
Examinership, which emerged last year as a "very effective mechanism for trading entities", would increase in number during 2012 as the "squeeze on personal spending" continued.
Meanwhile, the deal that pulled Superquinn out of receivership last year -- known in the accounting industry as a "pre-pack" receivership -- will become far more common.
The report expresses "surprise" that the method was not used by anyone else during the year but that is likely to change during 2012, especially for businesses considered too small for examinership.
Reflecting on last year, Mr Kavanagh pointed to the "unprecedented levels" of insolvency and corporate restructuring during the year.
"The sheer size and volume of cases continues to amaze us all, and the range of professionals engaged in this space is expanding to so many variations of 'asset manager', that it's difficult to keep track," he added.