Risk Watch Essentials - June 2020

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

1. Winding up Applications are down by 62%.  The ATO filed only 2 winding up applications in April 2020 and did not file any winding up applications in May or June 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 54%;

3. Voluntary Administrations are down 29% but after adjusting the figures to record multiple companies in a group as a single appointment (e.g. Virgin Airlines and PAS Group) Voluntary Administrations are down 42%;

4. Voluntary Liquidations are down 27%.

Risk Watch Essentials - June 2020
 

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

No. of Registered Liquidators in Australia as at June 2020

Registered Liquidators    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS   
TOTAL 635    245 (38%)    154 (25%)    106 (16%)    64 (10%)    10 (2%)    46 (7%)    2 (<1%)    8 (1%)

Winding Up Applications filed with the Court in Australia in June 2020

Winding Up Applications    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS   
TOTAL 92    28 (30%)    36 (39%)    17 (18%)    8 (9%)    0 (0%)    2 (2%)    1 (1%)    0 (0%)

Analysis:
A total of 92 Winding Up applications were filed throughout Australia in June 2020, the majority of which were in Victoria (36 or 39%), New South Wales (28 or 30%), and Queensland (17 or 18%).

Formal Appointments in June 2020

Formal Appointments    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS   
TOTAL 529    201 (38%)    145 (27%)    105 (20%)    17 (3%)    10 (2%)    25 (5%)    1 (0%)    25 (5%)
Creditors'/Members' Voluntary Liquidation 376 151 (40%)    87 (23%)    80 (21%)    10 (3%)    9 (2%)    15 (4%)    1 (0%)    23 (6%)   
 Court Liquidation    75    22 (29%)    25 (33%)    14 (19%)    5 (7%)    1 (1%)    7 (9%)    0 (0%)    1 (1%)
Voluntary Administration 78 28 (36%)    33 (42%)    11 (14%)    2 (3%)    0 (0%)    3 (4%)    0 (0%)    1 (1%)

Analysis:
There were a total of 529 formal appointments throughout Australia in June 2020, the majority of which were in New South Wales (201 or 38%), Victoria (145 or 27%) and Queensland (105 or 20%).

 

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