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

In addition to the tables below four (4) companies appointed a Restructuring Practitioner during the month of July 2021 in relation to the Debtor in Possession restructuring process for small businesses.

Registered Liquidators as at July 2021

Registered Liquidators	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	646	249 (39%)	156 (24%)	111 (17%)	63 (0%)	10 (2%)	45 (7%)	3 (<1%)	9 (1%)

Winding Up applications filed with the Court in July 2021

Winding Up Applications	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	135	39 (29%)	59 (44%)	26 (19%)	7 (5%)	1 (1%)	2 (1%)	0 (0%)	1 (1%)

Analysis:

A total of 135 Winding Up applications were filed throughout Australia in July 2021, the majority of which were in Victoria (59 or 44%), New South Wales (39 or 29%) and Queensland (26 or 19%), and Western Australia (7 or 5%). There were smaller numbers of winding up applications filed in the South Australia, Australian Capital Territory and Tasmania and none in Northern Territory.

There was only one winding up application filed by the ATO in July 2021.

Formal Appointments in July 2021

Formal Appointments	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	613	277 (45%)	156 (25%)	114 (19%)	22 (4%)	15 (2%)	23 (4%)	0 (0%)	6 (1%)
Court Liquidation	98	24 (24%)	31 (32%)	31 (32%)	7 (7%)	1 (1%)	4 (4%)	0 (0%)	0 (0%)
Creditors’/Members’ Voluntary Liquidation	420	197 (47%)	100 (24%)	71 (17%)	14 (3%)	14 (3%)	19 (5%)	0 (0%)	5 (1%)
Voluntary Administration	95	56 (59%)	25 (26%)	12 (13%)	1 (1%)	0 (0%)	0 (0%)	0 (0%)	1 (1%)

Analysis:
There were a total of 613 formal appointments throughout Australia in July 2021, the majority of which were in New South Wales (277 or 45%), Victoria (156 or 25%), and Queensland (114 or 19%).

Comparison of Pre-Covid FY 2020 and FY 2021 Formal Appointments

The graph below shows the formal appointments on a month by month basis (January to July) pre-covid (2019) compared with 2021. The number of formal appointments continue to be well below the pre-covid numbers and show no sign of increasing to pre-covid numbers. This is likely due to some businesses continuing to relying on Government pandemic relief measures and others which are trading whilst insolvent in the hope of better days or have closed their doors but not entered formal insolvency.

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