MANY businesses in the region are unaware of legislation designed to save companies in distress, research showed.
Two years after the introduction of the Enterprise Act, just 13 per cent of the North-East's businesses are aware of the legislation and how it can benefit firms in difficulty, according to research by PricewaterhouseCoopers.
The Enterprise Act was introduced in September 2003 and aims to encourage a new "rescue culture" in the UK.
Administrators must try to rescue a company as a going concern rather than selling off assets.
However, almost 90 per cent of UK businesses are unaware of its existence.
Sean Hamilton, of PricewaterhouseCoopers, said: "Too few North-East firms are aware of the UK's business rescue legislation. As a result we think managers are missing a trick."
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