Risk Watch Essentials - September 2020

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

  • Winding up Applications are down by 92%.  The ATO filed one (1) winding up application in July to September 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 76% but after adjusting the figures to record multiple companies in a group as a single appointment (e.g.iProsperity Group Pty Ltd) Court Liquidations are down 78%;
  • Voluntary Administrations are down 62% 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 65%;
  • Voluntary Liquidations are down 36%.

Risk Watch Essentials - September 2020

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

No. of Registered Liquidators in Australia as at September 2020:

REGISTERED LIQUIDATORS Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 637    243 (38%)    160 (25%)    106 (16%)    63 (10%)    10 (2%)    45 (7%)    2 (<1%)    8 (1%)

Winding Up applications filed with the Court in September 2020:

WINDING UP APPLICATIONS    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 14    6 (43%)    1 (7%)    5 (36%)    1 (7%)    0 (0%)    1 (7%)    0 (0%)    0 (0%)

Analysis:
A total of 14 Winding Up applications were filed throughout Australia in September 2020, the majority of which were in New South Wales (6 or 43%), Queensland (5 or 36%) and Victoria, Western Australia and South Australia (1 or 7%) each.

Formal Appointments in September 2020:

FORMAL APPOINTMENTS    Australia    NSW    VIC    QLD    WA    ACT    SA    NT    TAS
TOTAL 420 182 (43%) 94 (22%) 84 (20%) 16 (4%) 18 (4%) 22 (5%) 2 (0%) 2 (0%)

Creditors'/Members' Voluntary Liquidation

328 144 (44%) 64 (20%) 71 (22%) 11 (3%) 18 (5%) 17 (5%) 1 (0%) 2 (1%)
Court Liquidation 49    16 (33%) 23 (47%) 8 (16%) 0 (0%) 0 (0%) 2 (4%) 0 (0%) 0 (0%)
Voluntary Administration 43 22 (51%) 7 (16%) 5 (12%) 5 (12%) 0 (0%) 3 (7%) 1 (2%) 0 (0%)

Analysis:
There were a total of 420 formal appointments throughout Australia in September 2020, the majority of which were in New South Wales (182 or 43%), Victoria (94 or 22%) and Queensland (84 or 20%).

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