Record Insolvency Numbers for Start of 2013
ASIC have released the Corporate Insolvency statistics for January 2013, and it’s the highest January number since records were kept.
There were 628 corporate insolvency appointments in January 2013, a 21% increase over 2012’s January total of 518, which was the previous record high. It is also a 35% increase over the average of the previous 5 Januaries.
The major contributor to this increase is a large seasonal increase in court appointed liquidations. There were 186 court appointed liquidations (usually initiated by creditors of the liquidated company) in January 2013 which was a 135% increase over the January 2012 figure of 79, and a 170% increase over the average of the previous 5 Januaries. Court liquidation numbers usually take a significant dip in January as the courts are traditionally closed, but this January 2013 number is not far off the average month for 2012 of 241.
Geographically, all states except for NSW and ACT posted significant increases when compared to the average of the previous 5 Januaries. The most significant were Queensland with a 44% increase and Victoria with a 36% increase.