UK has most distressed firms

The UK currently has the highest percentage of financially distressed companies in western Europe because of its position as the leveraged buy-out capital over the past decade, a report from bankers at Close Brothers showed yesterday. This, combined with data from rating agencies that cast growing doubt on whether firms are able to repay debt, suggests that the “sticking plaster” cures propping up many UK corporates could rapidly come unstuck, the report said.