Risk Watch Essentials - February 2021

Risk Watch Essentials - February 2021

New Debtor in Possession and Insolvency Laws

From 1 January 2021, the Government introduced some core structural changes to the reconstruction and  insolvency regime which include the following:

During the month of February, only eighteen (18) companies across Australia lodged a Declaration of Eligibility for Temporary Restructuring Relief and only three (3) companies appointed a Restructuring Practitioner.

Risk Watch Essentials - February 2021

The tables below summarises the data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for February 2021.

No. of Registered Liquidators in Australia as at February 2021

Registered Liquidators Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 655   

256 (38%)

160 (25%)    109 (16%)    64 (10%)    10 (2%)    46 (7%)    2 (<1%)    8 (1%)

Winding Up applications filed with the Court in February 2021

Winding Up applications Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 32    12 (38%)    14 (44%)    2 (6%)    1 (3%)    0 (0%)    3 (9%)    0 (0%) 0 (0%)

Analysis:
A total of 32 Winding Up applications were filed throughout Australia in February 2021, the majority of which were in Victoria (14 or 44%), New South Wales (12 or 38%), South Australia had (3 or 9%) and Queensland (2 or 6%). There were no winding up applications filed in the Australian Capital Territory, Northern Territory or Tasmania during February 2021.

Formal Appointments in February 2021

Formal Appointments Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 422    170 (40%)    133 (32%)    62 (15%)    21 (5%)    11 (3%)    17 (4%)    0 (0%)    8 (2%)
Creditors'/Members' Voluntary Liquidation 290 134 (46%) 65 (22%) 51 (18%) 15 (5%) 9 (3%) 11 (4%) 0 (0%) 5 (2%)
Court Liquidation 45 15 (33%) 13 (29%) 6 (13%) 3 (7%) 2 (4%) 6 (13%) 0 (0%) 0 (0%)
Voluntary Administration 87 21 (24%) 55 (63%) 5 (6%) 3 (3%) 0 (0%) 0 (0%) 0 (0%) 3 (3%)

Analysis:
There were a total of 422 formal appointments throughout Australia in February 2021, the majority of which were in New South Wales (170 or 40%), Victoria (133 or 32%) and Queensland (62 or 15%).

Menu