Australian Corporate Insolvency Statistics for June 2012

The corporate insolvency statistics for June 2012 have been published. June was a better month for corporate Australia with 799 insolvency appointments. This is a 22% decrease from the previous June, but it should be kept in mind that June 2011 was unseasonably high. A more relevant statistic is to compare June’s number to the average of the last 5 Junes from which 2012 shows only a 2% decrease from average. This is a break from the trend of record high insolvency numbers which was going for about a year.

The key statistics are:

• The number of companies entering some form of insolvency administration (including Liquidation, Voluntary Administration and Receivership) in the 12 months to June 2012 was 10,757. That is a 9% increase over the previous year and a 21% increase over the average of the previous 5 years.

• The number of insolvencies in June 2012 was 799 which is a 22% decrease from the previous June, and a 2% decrease from the average of the previous five Junes.

• Appointments initiated by secured creditors have taken a particularly large dip, posting the lowest number since early 2010 with 85.

June 2012 has broken 2012’s trend of month after month of high insolvency numbers.  The parties initiating insolvency appointments are a point of interest for June. There were 453 appointments initiated by directors in June making up 57% of the monthly total. This is a record high percentage total for any type of initiator and supports our findings from April 2012 that appointments are being initiated by Directors and Trade Creditors much more often than Secured Creditors.