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Insolvency trade body comments on ash crisis

R3, the insolvency trade body, has commented on the financial effects of the volcanic ash crisis.

The `fallout` will go on affecting companies of every size long after the planes are allowed to fly again, as the absence of workers means "already stretched resources" are stretched even further, R3 President Peter Sargent has warned in a press release on the R3 site.

What`s more, the crisis could not have come at a worse time, with so many companies suffering from the effects of the recession. Small businesses and companies whose workers can`t work anywhere but on-site are likely to be particularly affected - when employers don`t know when to expect their workers back, it`s very hard to plan around this.

And once they are back at work, Mr Sargent predicts that making up for the lost time "will have dire consequences for businesses` bottom line".

Then there`s the impact on manufacturing: many manufacturers rely on parts delivered from all over the planet, so the airlines` problems are bound to affect production, potentially leading to financial worries and job cuts.

"I fear that this financial dark cloud could linger for some time to come with many businesses that had exhausted their reserves in order to survive the recession unable to continue," Mr Sargent said.

The press release finishes with a reminder that any company or individual affected by the ash crisis` financial impact should get some professional advice `as a matter of urgency`.

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