Australian Insolvency - May 2020

The tables in the following link summarise data essentials captured from Rodgers Reidy's daily Risk Watch publication, which provides a synopsis of the insolvency market for May 2020 including:

• No. of Registered Liquidators in Australia as at May 2020
• Winding Up applications filed with the Court in May 2020
• Formal Appointments in May 2020

Click here to read Risk Watch Essentials

Covid Analysis

The tables and graphs (found here) show that the Covid stimulus measures introduced have had a drastic effect on the number of insolvency and winding up procedures.

For the April-May 2020 period compared to the April-May 2019, the data indicates a significant reduction in the number of reported events.

Winding up Applications are down by 57%. The ATO filed only 2 winding up applications in April 2020 and did not file any winding up applications in May 2020. This is consistent with our understanding that during this period the ATO is more focused on business support measures than recovery procedures;
Court Liquidations are down 46%;
Voluntary Administrations are down 30% but this includes 38 companies in the Virgin Airlines group, which if counted as one appointment, Voluntary Administrations are down 44%;
Voluntary Liquidations are down 29%.