May 19, 2014

Corporate Insolvencies fall during the March quarter 2014

ASIC have released the third quarter insolvency statistics for the 2013–14 financial year, with statistics showing a fall of 21.1% in companies entering external administration (EXAD).

Corporate appointments of 2,014 compared to 2,552 in the previous quarter, partially reflect the normal fall in activity during the Christmas and New Year period. The March 2011 quarterly result was the last time that EXADs fell below 2,500 for the quarter.

The March quarter 2014 total was 19.6% lower than the March quarter 2013 total with 2506 appointments.

Appointment Type

External administration appointments fell across the board in all types of insolvency in comparison to the previous quarter.

  • Court liquidations (down 24.7%)
  • Creditor voluntary liquidations (down 20.4%)
  • Receiverships (down 17%)
  • Voluntary administrations (down 17.7%)

Court liquidations also saw significant falls in every region in Australia, with the exception of the ACT and NT, which saw rises of 6 appointments and 1 appointment respectively.

  • New South Wales (down 23.5%)
  • Victoria (down 28.4%)
  • Queensland (down 31%)
  • Western Australia (down 17.9%)
  • South Australia (down 14.8%)
  • Tasmania (down 42.9%)

Receiverships appointments also recorded falls across most regions, with Victoria (down 13.6%) and Queensland (down 21.2%), while falls in New South Wales were not as large (down 3.4%).

The fall in director-initiated winding up appointments was the result of large falls in New South Wales (down 24.4%) and Victoria (down 22.4%), with Queensland falling by a lesser extent (down 6.1%).

The fall in the appointment of voluntary administrators was driven by New South Wales (down 32.4%) and Queensland (down 31.1%), with Victoria falling to a lesser extent (down 11.5%).

Corporate Appointments by Industry

Analysis by industry type – quarter ended 31 March 20

Top 10 Industries    Sep Qtr 2013Dec Qtr 2013Mar Qtr 2013Total%
Other (business & personal) services8598556452,35931%
Accommodation & food services2362221886469%
Retail trade2252031565848%
Transport, postal & warehousing1421191003615%
Rental, hiring & real estate services10178582373%
Wholesale trade7147531712%
Agriculture, forestry & fishing8143441682%
Information media & telecommunications7559321662%
Other industries33828520783011%

Corporate Insolvency by region

Corporate Insolvency appointments were down across all states, with the exception of the Northern Territory, which experienced a small increase in appointments (up by 2 appointments).

The results were driven by significant falls in the 3 largest states in comparison to the December quarter 2013.

  • New South Wales (down 23.7%)
  • Victoria (down 22.2%)
  • Queensland (down 20%)
  • South Australia (down 14.1%)
  • Western Australia (down 10.1%)
  • Tasmania (down 55.6%)
  • ACT (down 4.4)

If you would like more advice on how SV Partners can assist your clients with corporate insolvency matters, please contact one of our expert advisors on 1800 246 801.

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