By Mike Verdin BBC News Online business reporter

Accounting errors, trade slowdowns and the collapse in pension fund values could prompt a spate of "major crises" among UK firms, a leading company troubleshooter has warned.

David James, who in 2000 overcame the financial crisis at the Millennium Dome, insisted that a "vast number" of UK companies have seen their finances deteriorate such that they are operating in breach of lending commitments.

The turmoil, currently involving at least three listed firms and firms in manufacturing and service sectors, could see banks withhold loan cash, starving companies of funds.

There are significant aspects of recession starting to bite

David James

"There is much more trouble in medium-sized companies than is really perceived," Mr James said in an exclusive interview with BBC News Online.

"We could have quite a few major crises in the next few months."

'Pattern'

The collapse of British Energy was symptomatic of a wider problem where firms have suddenly realised they were operating in breach of bank covenants.

"This is a pattern I am seeing," he said.

At least two of the three troubled listed companies he had had contact with were "in exactly the same situation".

His comments come as questions have risen over the performance of mid-ranking firms including Colt Telecom, which hedge fund Elliott Associated has threatened with administration proceedings.

Pensions problem

Mr James linked the downturn in financial fortunes to weak trading over the summer.

"There are significant aspects of recession starting to bite," he said.

It has been a matter of incompetence [rather than fraud]

David James

He also warned that the collapse in share values had left many firms in breach of pension commitments.

"The biggest problem we have over here at the moment is underprovision for pension schemes," he said.

"If all the deficiencies had to be made up at the present moment, there would be wholesale slaughter of British business."

'Significant misstatement'

Some companies were also faced with the fallout of inappropriate "smartarse" accounting methods.

In at least two of the listed firms he had assessed there had been "a very significant misstatement of accounts for the last year or two".

But he denied that Enron-style fraud was in evidence.

"It has been a matter of incompetence," he said.

'Business uptick'

Mr James' warning of a rise in corporate concerns was reflected by others involved in insolvency and administration.

"There is an uptick, and signs that business might be getting a bit busier," said Tony Supperstone, head of business recovery services at accountancy firm BDO Stoy Hayward.

A PricewaterhouseCoopers administration expert reported an insolvency focus on increasingly large firms.

The comments also follow HSBC finance director Douglas Flint warning of ballooning bad debts at some banks.