Geelong Advertiser – COVID-19 effect on insolvency appointments

Geelong Advertiser – COVID-19 effect on insolvency appointments

Data released by Australian Financial Security Authority (AFSA) revealed the number of debtors facing personal insolvency in the Geelong region grew from 19 in December, to 50 by the end of March.

According to the Australian Securities and Investments Commission (ASIC) statistics 38 Geelong companies facing debt were no longer in operation, up from 11 at the end of last year. It comes weeks after economic experts projected City of Greater Geelong’s yearly GDP would shrink by up to 10 per cent this financial year.

Rodgers Reidy director and insolvency specialist David Holton told the Geelong Advertiser his company had seen a steady decline in numbers over March, April and May. The lull came after the Federal Government announced JobKeeper and various financial support options for businesses.

“It is largely anticipated in the industry that the numbers of appointments will start to increase sometime between June and December 2020 as we slowly come out of the COVID arrangements and the Government financial packages (like JobKeeper) are finalised,” Mr Holton said.

“Locally from a Geelong point of view – we have fielded numerous enquiries from businesses that are under financial pressure. However to date there has not been a surge in any formal appointments.”

To view the full article by Geelong Advertiser, click here.