HomePostsRisk Watch Essentials – July 2021

Risk Watch Essentials – July 2021.

mm
Categories: UncategorizedAugust 10, 2022
mm
Categories: UncategorizedAugust 10, 2022

Share

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.

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.

You can refer Risk Watch to a friend or colleague by clicking the ‘forward it to them’ link available at the bottom of each bulletin. If you want to change the way you receive the emails, you can also update your preferences or unsubscribe at any time.

If you are having difficulty viewing Risk Watch, simply add [email protected] to your contacts in your email client.

Rodgers Reidy

Associate Director

Before joining Rodgers Reidy, Chris spent 5 years in the insolvency and restructuring division of a Big 4 professional services firm. Since joining Rodgers Reidy 2012, he has gained extensive expertise in formal insolvency appointments, restructuring and advisory appointments across a wide range of industries.

Meet our team of experts

Rodgers Reidy

Associate Director

Before joining Rodgers Reidy, Chris spent 5 years in the insolvency and restructuring division of a Big 4 professional services firm. Since joining Rodgers Reidy 2012, he has gained extensive expertise in formal insolvency appointments, restructuring and advisory appointments across a wide range of industries.

Meet our team of experts

Organise a
meeting today.

Contact us