Insolvency Statistics Reveal Second Record Month in a Row
ASIC have just released the Insolvency statistics for May 2013, and just like April 2013 before it, the monthly figure was a record high for the month. There were 974 corporate insolvency appointments in May 2013, topping the previous high of 914 in May 2010 by 7%. It was also a 10% increase over the previous May and a 15% increase over the average of the previous 5 Mays.
It was the worst month for New South Wales in over a year with 432 insolvencies for May, making up 44% of the national total. Voluntary Liquidations initiated by company directors were also a large contributor to this increase with 479 appointments making up 49% of total liquidations for the month.
Remember, it is the small and medium size company liquidations that drive the ASIC insolvency numbers. So whilst insolvency numbers in 2013 have not reached some of the peaks seen in 2012, the numbers have been consistently high, now with two record months.
Whilst it appears overall insolvency growth may be slowing, corporate Australia is not out of the woods yet. Some solace (well, for those not in the insolvency profession) is that rumour would have it that the large insolvency specialist firms are not particularly busy – a sign that fewer large companies have been hitting the wall.