Trend of Low Insolvency Numbers Continues
2014’s trend of low corporate Insolvency number continues with ASIC’s latest release, covering March 2014. It was the lowest March since 2008 with 764 companies entering some form of insolvency administration. This was a 17% decrease from March 2013 (918) and a 22% drop from the average of the previous five Marchs (980). When combined with the low numbers in January (511) and February (739), 2014 has been the best start to the year for Australian companies since the GFC.
New South Wales has seen the biggest drop in insolvency numbers with 273 appointments for March which is a 29% decrease compared to March 2013. The 2014 calendar year has seen 729 insolvencies in NSW which is a 26% decrease from the average of the same time period over the last 5 years (983), and the lowest total since 2005 when comparing totals from the same time period.
Court appointed liquidations were particularly low in March 2014, with only 187 appointments. When compared with March 2013’s figure of 268, this is a 30% decrease. Insolvency appointments initiated by secured creditors were also significantly down. March 2014 saw 95 insolvency appointments initiated by secured creditors, which is down 23% on the previous March total of 124.
For the third month running now corporate insolvency numbers are the lowest we have seen since the GFC in 2008. This indicates the worst may be over for Australian companies and 2014 is looking up. Good for corporate Australia…. not so good for insolvency practitioners.