ASIC Statistics
The Restructuring Works 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 November 2009 has increased 26% to 9,544 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 November 2009 was 747. That was a 26% decrease over the prior year November and considerably off the peak of 1095 in March 2009.
Included in the total number of insolvencies is the number of appointments by secured creditors which will include Receiverships, where a secured creditor appoints an external party, and Controllerships, where a secured creditor takes control of an asset itself. Those appointments are up 157% to 1,342 compared to the average of the previous five years. The data is graphed at Insolvency Appointments by Secured Creditors per Year;.
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 7.3% 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 14 companies entering a formal insolvency administration finding their way through the insolvency legislation and creditor negotiations to agree a restructuring.
The full list of our statistics including some graphs and comments is:
- 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 (ASIC based statistics)
- Insolvency Appointments by Secured Creditors per Year (ASIC based statistics)
- Restructurings as a percentage of Company Insolvencies (ASIC based statistics)
- Reserve Bank of Australia statistics for an overview and our comments on the RBA statistics
- Bank Lending to Business (RBA based statistics)
- Household Debt to Annual Disposable Income (RBA based statistics)
