Australian Insolvency - October 2020

The tables in the following link summarise data essentials captured from Rodgers Reidy's daily Risk Watch publication, which provides a synopsis of the insolvency market for October 2020 including:

No. of Registered Liquidators in Australia as at October 2020
Winding Up applications filed with the Court in October 2020
Formal Appointments in October 2020
Click here to read Risk Watch Essentials

Covid Analysis

The tables and graphs (found here) show that the Covid stimulus measures introduced have had a drastic effect on the number of insolvency and winding up procedures.

For the month of October 2020 compared to October 2019, the data indicates a significant reduction in the number of reported events in particular Winding Up Applications and Court Liquidations.

1. Winding up Applications are down by 94%. The ATO filed two (2) winding up applications in October 2020. This is consistent with our understanding that during this period the ATO is more focused on business support measures than recovery procedures;

2. Court Liquidations are down 93%.

3. Voluntary Administrations are down 64%.

4. Voluntary Liquidations are down 44%.