Australian Insolvency - November 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 November 2020 including:

No. of Registered Liquidators in Australia as at November 2020
Winding Up applications filed with the Court in November 2020
Formal Appointments in November 2020
Click here to read Risk Watch Essentials

Covid Analysis

The tables and graphs below show that the COVID-19 stimulus measures introduced have had a drastic effect on the number of insolvency and winding up procedures.

For the months of October and November 2020 compared to October and November 2019, the data indicates a significant reduction in the number of reported events, in particular, Winding Up Applications and Court Liquidations.

1. Winding up Applications are down by 93%. The ATO filed two (2) winding up applications in October 2020 and no winding up applications in November. This is consistent with our understanding that during this period the ATO is more focused on business support measures than recovery procedures;
2. Court Liquidations are down 92%.
3. Voluntary Administrations are down 50% but after adjusting the figures to record multiple companies in a group as a single appointment (e.g. Grocon) Voluntary Administrations are down 65%.
4. Voluntary Liquidations are down 38%.