Statistics
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 14 survive insolvency.
Corporate restructuring and insolvency is a complicated area. At Restructuring Works our focus is on saving businesses. If you are a director and want to save your business then you need the best advice. Why not CALL US NOW for CONFIDENTIAL FREE ADVICE or ask us to contact you using one of the methods detailed on the right hand side of this page.
A full explanation of insolvency statistics can be seen in our groundbreaking Business Stress Report which you can download using the icon at the left of this page.
Here is a snapshot of the most relevant statistics:
- The number of companies entering some form of insolvency administration in the year to November 2009 was 9,544. The number per month was 747 , which was a 26% decrease from the previous November. (here);
- The number of appointments by secured creditors, most commonly receiverships, is up 157% on the average of the previous 5 years (here);
- The cost of All Bank New Asset Impairment Charges, which equates to bad debts, by Australian Banks in the quarter to September 2009 was $7.1 billion. The total for the year to September 2009 has increased to $33.1 billion. That compares to an average of around $4.4 billion per year for the years 1995 to 2008.
- The percentage of companies successfully restructuring is very low and trending lower. Only 7.1% of companies entering some sort of insolvency administration successfully restructured in 2008, being a success rate of 1 in 14. This compares to a high of 14% in 1999 (here);
- Banks have $675 billion of outstanding loans to companies as at September 2009 compared to $326 billion five years ago, being a 107% increase (here);
- As at June 2009, Australian households are indebted at 155% of their disposable income compared to 81% ten years ago (here);
- As at September 2009, Credit Card debt was $45.1 billion compared to $11 billion ten years ago (RBA).
Until Restructuring Works analysed the insolvency statistics no one appreciated that the success rate in restructuring insolvent companies was so low. Directors should be very careful in selecting an adviser as the statistics show that most advisors can not lead their clients to a successful restructuring.
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 (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)
