Australian Insolvency - September 2020

Posted On: 1st October 2020
Australian Insolvency - September 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 September 2020 including:

  • No. of Registered Liquidators in Australia as at September 2020
  • Winding Up applications filed with the Court in September 2020
  • Formal Appointments in September 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 July - September 2020 period compared to July - September 2019, the data indicates a significant reduction in the number of reported events .

  1. Winding up Applications are down by 92%. The ATO filed one (1) winding up application in July to September 2020. 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 76% but after adjusting the figures to record multiple companies in a group as a single appointment (e.g.iProsperity Group Pty Ltd) Court Liquidations are down 78%;
  3. Voluntary Administrations are down 62% but after adjusting the figures to record multiple companies in a group as a single appointment (e.g.iProsperity Group Pty Ltd) Voluntary Administrations are down 65%;
  4. Voluntary Liquidations are down 36%.

Posted By: BTG Global Advisory

Posted On: 1st October 2020

BTG Global Advisory is one of the world’s largest specialist independent financial advisory alliances.