Insolvency Appointments by Secured Creditors Per Year
The ASIC Insolvency Statistics include details of appointments as Receiver, Controller, Managing Controller and Receiver & Manager. All of these appointments are by secured creditors, usually banks or other financiers. 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 lesson for directors of companies in financial difficulties is that banks are not as patient as they used to be. When in doubt a bank will not wait for a director to sort out a company's financial problems. So if you are a director and you are in discussions with your bank or are about to reveal some bad news to your bank we strongly recommend that you speak to us first. Call us for CONFIDENTIAL FREE ADVICE on how to deal with your bank.
Banks and other financiers will often take a mortgage or charge over a businesses assets when they lend money. When a business goes bad a Bank can be in a privileged position when it has that charge as it can take possession of assets as Mortgagee in Possession or appoint a Receiver & Manager.
For many years the banks have backed away from taking possession of assets, largely because it imposes a large administrative burden on them and because they were unhappy with how much they paid insolvency professionals in the early 1990s. But in 2008 the Banks enforced their security almost twice as often as they did over the previous 5 years.
Click on the following links to find 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)
