Here you will find the most comprehensive analysis of restructuring and insolvency statistics in Australia. The numbers paint a bleak picture. Our main concern is the alarmingly low success rate in restructuring companies – only 1 in 25 survive insolvency.
Here is a snapshot of the most relevant statistics:
- The number of companies entering some form of insolvency administration in the year to September 2015 was 9,668. The number per month was 1,091 which was a 37% increase over the previous September, and a 24% increase over the average of the previous five Septembers.
- The percentage of companies successfully restructuring is very low and trending lower. Only 4.1% of companies entering some sort of insolvency administration successfully restructured in the year to September, roughly a success rate of 1 in 25. This compares to a high of 14% in 1999.
- Banks had $819 billion of outstanding loans to companies as at June 2015 compared to $646 billion five years prior, being a 27% increase.
- As at December 2013, Australian households were indebted at 149% of their disposable income compared to 103% in 2001.
- As at September 2015, Credit Card debt was $50.8 billion compared to $16.8 billion in 2001 (RBA).
Until we analysed the insolvency statistics no one appreciated that the success rate in restructuring insolvent companies was so low.
Click on the following links to find more details and some graphs of relevant statistics:
- Statistics for a summary of all relevant statistics and our comments
- ASIC statistics for an overview and our comments on the ASIC statistics
- Company Insolvencies per Year
- Restructurings as a percentage of Company Insolvencies
- Insolvencies by Industry