The Dissolve Insolvency Index measures the number of companies entering some form of insolvency administration such as Liquidation, Voluntary Administration or Receivership.
The number of companies entering some form of insolvency administration in the 12 months to the end of September 2015 has decreased by 4% to 9,668 companies when compared to the average of the previous five years. The data is graphed at Company Insolvencies per Year. The number of companies entering some form of insolvency administration in September 2015 was 1,091, which was a 37% increase over the prior year September and 24% increase from the average of the previous 5 September.
We have also developed a reliable measure of the ratio of successful corporate restructurings by comparing the number of companies that successfully execute a Deed of Company Arrangement against the number of companies that enter some form of insolvency administration. A Deed of Company Arrangement, or DOCA, is essentially a deal agreed by a company with its creditors as part of the Voluntary Administration procedure. We found that only 4.1% of companies entering some sort of insolvency administration successfully execute a DOCA. There has been a decline from 14.2% in 1999 to the current level. The data is graphed at Restructurings as a percentage of Company Insolvencies. This reveals a very low success rate in restructuring Australian companies that strike financial difficulties with only 1 in 25 companies entering a formal insolvency administration finding their way through the insolvency legislation and creditor negotiations to agree a restructuring.
Click on the following links to find more details and some graphs of relevant statistics:
“I’ve now referred two liquidations to Dissolve and in both cases my clients were amazed at the ease of the appointment process and how quickly the liquidation was finished.”…
Partner of a Sydney Accounting Firm
“Cliff and his staff provided a fast, efficient and friendly service. The process was simplified and all steps were communicated well. The price was exactly as advertised with.”…
Director of a Property Development Company
“…after I gave Dissolve the go-ahead I received the No Asset Liquidation Package within two hours and I had the company in liquidation the next morning.”…
Director of a Fashion Retailer