Risk Watch Essentials November 2021

Risk Watch Essentials November 2021

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

In addition to the tables below, eight (8) companies appointed a Restructuring Practitioner during the month of November 2021 in relation to the Debtor in Possession restructuring process for small businesses.

Covid

The tables and graphs below show the Covid lockdowns and stimulus measures introduced towards the end of June 2021 have caused a material reduction in the number of reported insolvency events during July to October 2021 compared with June 2021. However, there has been a slight increase in reported insolvency events during the month of November compared with the months of July to October 2021.

Notwithstanding the slight increase in reported insolvency events in November, the final graph below, when compared to the same time in 2019 indicates that the number of insolvency events in November 2021 is still approx 30% below pre pandemic levels.

No. of Registered Liquidators in Australia as at November 2021

Registered Liquidators Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 652    250 (38%)    158 (24%)    113 (17%)    64 (10%)    10 (2%)    45 (7%)    3 (<1%)    9 (1%)

Winding Up applications filed with the Court in November 2021

Winding Up applications Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 140    66 (47%)    41 (29%)    17 (12%)    8 (6%)    1 (1%)    6 (4%)    0 (0%)    1 (1%)

Analysis:

A total of 140 Winding Up applications were filed throughout Australia in November 2021, the majority of which were in New South Wales (66 or 47%), Victoria (41 or 29%), and Queensland (17 or 12%), and Western Australia (8 or 6%). There were smaller numbers of winding up applications filed in South Australia, Australian Capital Territory, Tasmania and none in the Northern Territory.

There was one (1) winding up application filed by the ATO in November 2021.

Formal Appointments in November 2021

Formal Appointments    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 548 211 (39%) 142 (26%) 108 (20%) 30 (5%) 26 (5%) 26 (5%) 1 (0%) 4 (1%)
Court Liquidation 81 36 (44%) 15 (19%) 17 (21%) 6 (7%) 1 (1%) 5 (6%) 1 (1%) 0 (0%)
Creditors'/Members' Voluntary Liquidation 396 152 (38%) 109 (28%) 70 (18%) 15 (4%) 25 (6%) 21 (5%) 0 (0%) 4 (1%)
Voluntary Administration 71 23 (32%) 18 (25%) 21 (30%) 9 (13%) 0 (0%) 0 (0%) 0 (0%) 0 (0%)

Analysis:

There were a total of 548 formal appointments throughout Australia in November 2021, the majority of which were in New South Wales (211 or 39%), Victoria (142 or 26%) and Queensland (108 or 20%).

Comparison of Pre-Covid FY 2020 and FY 2021 Formal Appointments

The graph below shows the formal appointments on a month by month basis (January to November pre-covid (2019) compared with 2021. The number of formal appointments continue to be well below the pre-covid numbers and show no sign of increasing to pre-covid numbers. This is likely due to some businesses continuing to rely on Government pandemic relief measures and others which are trading whilst insolvent in the hope of better days or have closed their doors but not entered formal insolvency.

Rodgers Reidy is one of the foremost providers of insolvency, forensic and reconstruction services to distressed businesses throughout Australia, New Zealand and Asia. With a strong commitment to integrity and the community, Rodgers Reidy provides a professional and quality service, offering innovative, cost effective solutions.  Please contact any of our directors by clicking the appropriate office below for an initial consultation free of charge.

You can refer Risk Watch to a friend or colleague by clicking the 'forward it to them' link available at the bottom of each bulletin. If you want to change the way you receive the emails, you can also update your preferences or unsubscribe at any time.

If you are having difficulty viewing Risk Watch, simply add riskwatch@rodgersreidy.com.au to your contacts in your email client.

Menu