Insolvencies up by 8% in February – Euler Hermes

As many as 76 companies became insolvent in February, which is 8 percent y/y increase, Euler Hermes said. The largest number of companies filed for insolvency was once again seen in the construction sector. “If we assume that the construction industry includes, the contractors of the works, as well as the suppliers of materials, it accounts for 1/3 of all insolvencies The rate of repayment of liabilities is only marginally better in this sector compared to the disastrous last year. The question remains as to how in the future the liquidity of smaller entities, including specialized subcontractors of large investments, will be affected not only by increasing labor costs but also regulatory changes,” Tomasz Starus from Euler Hermes said. Insolvency includes the inability to pay liabilities to suppliers, resulting in bankruptcy or any form of restructuring proceedings.