Corporate insolvencies reach 'highest ever' figures in 2011
2011 is well on the way to setting a record for corporate insolvencies, according to Dissolve - a business specialising in company liquidations.
"This is more bad news about the state of corporate Australia," said Dissolve chief executive officer Cliff Sanderson, commenting on the most recent release of insolvency statistics from the Australian Securities and Investments Commission.
Statistics have been recorded in the current format since 1999, and 2011 has seen a number of "highest ever" figures. Over 900 companies (921) entered insolvency administration in the month of July 2011. The figure is down from June's 1,027 insolvencies, but still takes out the title of the highest July ever.
In the year to July 2011, there were 1,355 appointments by secured creditors - the major contributor being banks appointing receivers.
"Interestingly, the number of voluntary administrations, which have the stated purpose of saving a business, is the lowest on a 12 month basis," Sanderson said.
"This suggests that we are seeing a lot of companies that have previously ceased to trade being given their last rights," he added. The majority of those companies originally struck trouble in global financial crisis part one, Sanderson said.
"We are yet to see the full effect of recent troubles in the retail sector. So we expect that the numbers will continue to be poor through to the end of 2011," he said.
AUTHOR
Angela Welsh
Recommended for you
Financial advisers and wealth managers need to exceed their clients’ desires for personalisation, a new EY report writes, and the requirements for this will vary between client segments.
Betashares chief executive, Alex Vynokur, believes technology advancements will enable banks to return to financial advice in the future as the need for advice is greater than ever.
Centrepoint Alliance has upgraded its expected financial results for FY24, thanks to strong adviser recruitment and the acquisition of Queensland advice firm Financial Advice Matters.
The corporate regulator has permanently banned a Melbourne-based financial adviser that “dishonestly attempted to induce clients to transfer their superannuation into a bank account he controlled”.
