The tables below summarise the data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for April 2021.

In addition to the tables below only three (3) companies appointed a Restructuring Practitioner during the month of April 2021 in relation to the Debtor in Possession restructuring process for small businesses.

No. of Registered Liquidators in Australia as at April 2021

Registered Liquidators	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	645	247 (38%)	158 (25%)	109 (16%)	65 (10%)	10 (2%)	46 (7%)	2 (<1%)	8 (1%)

Winding Up applications filed with the Court in April 2021

Winding Up applications	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	132	37 (28%)	58 (44%)	21 (16%)	8 (6%)	0 (0%)	7 (5%)	1 (1%)	0 (0%)

Analysis:

A total of 132 Winding Up applications were filed throughout Australia in April 2021, the majority of which were in Victoria (58 or 44%), New South Wales (37 or 28%), Queensland (21 or 16%) and Western Australia (8 or 6%). There were smaller numbers of winding up applications filed in the South Australia and Northern Territory and none in Australian Capital Territory and Tasmania during April 2021.

There were no winding up applications filed by the ATO in April 2021.

Formal Appointments in April 2021

Formal Appointments	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	525	216 (41%)	137 (26%)	87 (17%)	33 (6%)	12 (2%)	33 (6%)	1 (0%)	6 (1%)
Court Liquidation	75	14 (19%)	33 (44%)	18 (24%)	5 (7%)	1 (1%)	3 (4%)	1 (1%)	0 (0%)
Creditors’/Members’ Voluntary Liquidation	402	46 (93%)	93 (23%)	62 (15%)	22 (5%)	9 (2%)	26 (6%)	0 (0%)	6 (1%)
Voluntary Administration	48	38 (11%)	11 (23%)	7 (15%)	6 (13%)	2 (4%)	4 (8%)	0 (0%)	0 (0%)

Analysis:
There were a total of 525 formal appointments throughout Australia in April 2021, the majority of which were in Victoria (137 or 26%), New South Wales (216 or 41%), and Queensland (87 or 17%).

Comparison of FY 2020 and FY 2021 Formal Appointments

The graph below shows the cumulative formal appointments for financial year 2020 and for 2021 financial year to date. The total number of formal appointments are 41% lower in financial year 2021 to date compared with the same time in financial year 2020. The number of formal appointments have fallen well below the pre-pandemic numbers rather than increase, which had been expected. This is likely due to businesses relying on Government pandemic relief measures together with the ATO being more focused on business support measures than commencing recovery procedures.

Rodgers Reidy is one of the foremost providers of insolvency, forensic and reconstruction services to distressed businesses throughout Australia, New Zealand and Asia. With a strong commitment to integrity and the community, Rodgers Reidy provides a professional and quality service, offering innovative, cost effective solutions.  Please contact any of our directors by clicking the appropriate office below for an initial consultation free of charge.

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