Corporate insolvencies at a historic high
Corporate insolvencies remain at historically high levels, rising by 16.7 per cent in the March quarter compared to the same time last year, according to the latest figures from the Australian Securities and Investments Commission (ASIC).
It is also the third consecutive quarter in the current financial year in which external administrations exceeded 2,500 per quarter, rising from 2,598 in the December 2011 quarter to 2,655 during the March quarter period, the statistics revealed.
On a monthly basis, external administrations increased significantly from 518 in January to 1,123 in February, and then fell marginally to 1,014 in March. ASIC stated the January appointments reflect the fall-off in activity often associated with the holiday period.
Of the largest states, Queensland showed the most significant rise in external administrations during the March quarter compared to the same period last year, posting an increase of 54.2 per cent from 404 to 623. Despite this, New South Wales topped the states with 1,042 external administrations, followed by Victoria on 658.
According to ASIC, the external administration results were also underpinned by a rise in court liquidation (from 823 in the December quarter to 874 in the March quarter) and receivership appointments (from 289 in the December quarter to 313 over the March quarter).
Creditor's voluntary liquidations remain relatively steady, showing only 1.1 per cent from the December quarter to 1,099 in the March quarter, while voluntary administrations fell from 390 to 369.
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