Risk Watch Essentials - November 2020

Risk Watch Essentials - November 2020

Covid Analysis

The tables and graphs below show that the COVID-19 stimulus measures introduced have had a drastic effect on the number of insolvency and winding up procedures.

For the months of October and November 2020 compared to October and November 2019, the data indicates a significant reduction in the number of reported events, in particular, Winding Up Applications and Court Liquidations.

  • Winding up Applications are down by 93%.  The ATO filed two (2) winding up applications in October 2020 and no winding up applications in November.  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 92%.
  • Voluntary Administrations are down 50% but after adjusting the figures to record multiple companies in a group as a single appointment (e.g. Grocon) Voluntary Administrations are down 65%.
  • Voluntary Liquidations are down 38%.

Risk Watch Essentials - November 2020

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

No. of Registered Liquidators in Australia as at November 2020

Registered Liquidators    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 639    244 (38%)    160 (25%)    108 (16%)    62 (10%)    10 (2%)    45 (7%)    2 (<1%)    8 (1%)

Winding Up applications filed with the Court in November 2020

Winding Up applications    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL   25    8 (32%)    11 (44%)    5 (20%)    1 (4%)    0 (0%) 0 (0%) 0 (0%) 0 (0%)

Analysis:
A total of 25 Winding Up applications were filed throughout Australia in November 2020, the majority of which were in Victoria (11 or 44%), New South Wales (8 or 32%), Queensland (5 or 20%). There was only one application file in Western Australia, with no winding up applications filed in the Australian Capital Territory, South Australia, Northern Territory or Tasmania during November 2020.

Formal Appointments in November 2020

Formal Appointments    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS   
TOTAL 414    175 (42%)    105 (25%)    82 (20%)    17 (4%)    15 (4%)    19 (5%)    0 (0%)    1 (0%)   
Creditors'/Members' Voluntary Liquidation    302 151 (50%) 46 (15%) 61 (20%) 13 (4%) 14 (5%) 16 (5%) 0 (0%) 1 (0%)
Court Liquidation 21 2 (10%) 9 (43%) 7 (33%) 3 (14%) 0 (0%) 0 (0%) 0 (0%) 0 (0%)
Voluntary Administration 91 22 (24%) 50 (55%) 14 (15%) 1 (1%) 1 (1%) 3 (3%) 0 (0%) 0 (0%)

Analysis:
There were a total of 414 formal appointments throughout Australia in November 2020, the majority of which were in New South Wales (175 or 40%), Victoria (105 or 25%) and Queensland (82 or 19%).

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