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11-138MR Corporate insolvencies on the rise: ASIC

Thursday 7 July 2011


Official figures released by ASIC today reveal corporate insolvencies have risen 4.4% in the 2010-11 financial year to date.

ASIC’s Senior Executive Leader of the Insolvency Practitioners team, Adrian Brown, said that despite a decrease in external administration appointments in May compared to the same time last year, these latest figures show the number of court liquidations and director initiated creditors voluntary liquidations have risen.

‘Statistics collated by ASIC up to and including May 2011, show court liquidations in Australia rose 8.6% and director initiated creditors voluntary liquidations rose 7.6%.
Western Australia is also seeing its fair share of corporate insolvencies, despite suggestions that it’s in the fast lane of a two speed economy,’ Mr Brown said.

‘Interestingly, receivership and voluntary administration appointments, Australia-wide, have fallen,’ Mr Brown added.

ASIC publishes monthly insolvency statistics detailing the number and type of corporate insolvency appointments. External administrators, (liquidators, receivers and managers and voluntary administrators) are obliged by law to advise ASIC of their appointments.

Further analysis of data received by ASIC appears below.

More information on ASIC’s insolvency statistics


Analysis by state – Financial year to date


For the 11 month period to May 2011, there have been 8,802 external administrations (EXADs) - a rise of 4.4% on the 8,433 EXADs for the same period last financial year. The table below provides a breakdown by State:

Companies entering into external administration
State
11 months to May 2010
%
11 Months to May 2011
%
%
increase
NSW3,59842.7%3,63041.2%0.9%
VIC2,12325.2%2,33126.5%9.8%
QLD1,69820.1%1,69219.2%-0.4%
SA2803.3%3173.6%13.2%
WA5176.1%6247.1%20.7%
TAS760.9%710.8%-6.6%
NT200.2%310.4%55.0%
ACT1211.4%1061.2%-12.4%
TOTAL8,4338,8024.4%

NB: ASIC notes that percentage changes in smaller states can be unduly influenced by a relatively small number of appointments

Victoria (+9.8%), South Australia (+13.2%), Western Australia (+20.7%) and Northern Territory (+55.0%) have also recorded an increase over the 11 month period compared to last year.

Queensland (-.04%) and New South Wales (+.09%) have been relatively stable over the same period while Tasmania (-6.6%) and ACT (-12.4%) experienced a decline in EXADs.


Analysis by appointment type – Financial year to date*



Companies entering external administration
11 Months to May 2010
11 Months to May 2011
% change
Court liquidations (1)
2,218
2,409
8.6%
Creditors Voluntary
3,564
3,835
7.6%
Receiverships (2)
1,239
1,219
-1.6%
Voluntary Administration
1,411
1,332
-5.6%

(1) includes Provisional liquidations
(2) includes Receivers, Receivers & Managers, Controllers and Managing Controllers
*excludes Scheme Administrator and Foreign/RAB wind-ups
*excludes Members Voluntary Liquidation appointments as these relate to solvent entities


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