Risk Watch Essentials - July 2020

Risk Watch Essentials - July 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 month of July 2020 compared to July 2019, the data indicates a significant reduction in the number of reported events.

  • Winding up Applications are down by 85%.  The ATO did not file any winding up applications in July 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 64%;
  • Voluntary Administrations are down 34% 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 45%;
  • Voluntary Liquidations are down 30%.
Risk Watch Essentials - July 2020
 

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

No. of Registered Liquidators in Australia as at July 2020

Registered Liquidators    Australia    NSW    VIC    QLD WA    ACT    SA    NT    TAS
TOTAL      628    238 (38%)    155 (25%)    105 (16%)    64 (10%)    10 (2%)    46 (7%)    2 (<1%)    8 (1%)

 

Winding Up Applications filed with the Court in July 2020

Winding Up Applications Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 53    16 (30%)    16 (30%)    10 (19%)    8 (15%)    0 (0%)    1 (2%)    2 (4%)    0 (0%)

Analysis:
A total of 53 Winding Up applications were filed throughout Australia in July 2020, the majority of which were in Victoria (16 or 30%), New South Wales (16 or 30%), and Queensland (10 or 19%).

 

Formal Appointments in July 2020

Formal Appointments    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 562    250 (44%)    153 (27%)    81 (14%)    29 (5%)    27 (5%)    21 (4%)    0 (0%)    1 (0%)
Creditors'/Members' Voluntary Liquidation 419 189 (45%)    100 (24%)    65 (16%)    24 (6%)    22 (5%)    18 (4%)    0 (0%) 1 (0%)
Court Liquidation 72 25 (35%)    35 (49%)    8 (11%)    2 (3%)    1 (1%)    1 (1%) 0 (0%) 0 (0%)
Voluntary Administration 71 36 (51%)    18 (25%)    8 (11%)    3 (4%)    4 (6%)    2 (3%)    0 (0%) 0 (0%)

Analysis:
There were a total of 562 formal appointments throughout Australia in July 2020, the majority of which were in New South Wales (250 or 44%), Victoria (153 or 27%) and Queensland (81 or 14%).

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