Risk Watch Essentials - August 2020

Risk Watch Essentials - August 2020

Covid Analysis

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

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

  • Winding up Applications are down by 89%.  The ATO did not file any winding up applications in July or August 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 74%;
  • 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 66%;
  • Voluntary Liquidations are down 37%.

Risk Watch Essentials - August 2020

The tables below summarise data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for August 2020.

No. of Registered Liquidators in Australia as at August 2020

Registered Liquidators Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
Total 633    240 (38%)    159 (29%)    105 (16%)    64 (10%)    10 (2%)    45 (7%)    2 (<1%)    8 (1%)

Winding Up applications filed with the Court in August 2020

Winding Up applications Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
Total 19    8 (42%)    4 (21%)    4 (51%)    2 (11%)    0 (0%)    1 (5%)    0 (0%)    0 (0%)

Analysis:
A total of 19 Winding Up applications were filed throughout Australia in August 2020, the majority of which were in New South Wales (8 or 42%), Victoria (4 or 21%), and Queensland (4 or 21%).

Formal Appointments in August 2020

Formal Appointments    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 382    188 (49%)    78 (20%)    58 (15%)    23 (6%)    18 (5%)    15 (4%)    0 (0%)    2 (1%)
Creditors'/Members' Voluntary Liquidation 300 159 (53%) 53 (18%) 44 (15%) 13 (4%) 16 (5%) 13 (4%)

0 (0%)

2 (1%)
Court Liquidation 39 9 (23%) 15 (38%) 5 (13%) 7 (18%) 1 (3%) 2 (5%) 0 (0%) 0 (0%)
Voluntary Administration 43 40 (47%) 10 (23%) 9 (21%) 3 (7%) 1 (2%) 0 (0%) 0 (0%) 0 (0%)

Analysis:
There were a total of 382 formal appointments throughout Australia in August 2020, the majority of which were in New South Wales (188 or 49%), Victoria (78 or 20%) and Queensland (58 or 15%).

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