Insolvency Statistics Released for April 2012
ASIC has released the corporate insolvency statistics for April 2012. They reveal that April, whilst short of February’s all time high, was another bad month for corporate Australia with 869 insolvency appointments. This is the worst April on record, the previous high was 812 in April last year. This continues the trend of all time highs which has been going for about a year now.
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 April 2012 was 10,918. That is the highest rolling year on record for Australia. It is a 12% increase over the previous year and a 24% increase over the average of the previous 5 years.
- The number of insolvencies in April 2012 was 869 which is a 7% increase over the previous April, and a 23% increase over the average of the previous five Aprils.
- State by state insolvency numbers remain high in Queensland. For the month of April 2012 there were 208 appointments in Queensland making up 18% of the national total. Whilst the raw number is down from recent record months for them, the 2012 calendar year is up 67% when comparing to the average of the same period over the previous five years.
April 2012 was another month of high insolvency numbers continuing a trend that shows no signs of slowing. The statistics show that Company Directors and Trade Creditors are initiating an increasing number of these insolvencies. In the 12 months to 2012 Company Directors initiated 6,257 insolvencies being a 9% increase over the previous 12 months, and Creditors (other than banks) initiated 3,326 being a 25% increase over the previous year, but banks initiated 1,335 being a 2% decrease over the previous 12 months.