HomePostsRisk Watch Essentials – June 2022

Risk Watch Essentials – June 2022.

Categories: UncategorizedJuly 13, 2022
Categories: UncategorizedJuly 13, 2022

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Small Business Restructuring

During the month of June, 2022, twenty-three (23) companies appointed a Restructuring Practitioner in relation to the Debtor in Possession restructuring process for small businesses. This is the highest number of Small Business Restructuring appointments in one any (1) month since the legislation commenced on 1 January 2021.

Since 1 January 2021 there have been 82 appointments in relation to Small Business Restructuring, the graph below shows that there has been a significant increase in activity in the last two (2) months in appointing a Restructuring Practitioner compared with the previous 16 months.

Source: https://asic.gov.au/regulatory-resources/find-a-document/statistics/insolvency-statistics/insolvency-statistics-series-1-companies-entering-external-administration-and-controller-appointments/?mc_cid=edf7a9df8f&mc_eid=UNIQID

Rodgers Reidy is the leading appointee for appointments in relation to Small Business Restructuring. We have achieved excellent results for our clients, restructuring their businesses and saving the vast majority from a formal liquidation or administration. We urge directors to consider this option and act early. Feel free to contact from your local Rodgers Reidy office to discuss whether this option is right for your clients.

The tables and graphs below summarise the data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for June 2022.

Winding Up applications filed with the Court in June 2022

Winding Up applications Australia NSW VIC QLD WA ACT SA NT TAS
TOTAL 114 36 (32%) 52 (46%) 15 (13%) 5 (4%) 0 (0%) 6 (5%) 0 (0%) 0 (0%)

There were three (3) winding up applications filed by the ATO in June 2022

Formal Appointments in June 2022

Formal Appointments Australia NSW VIC QLD WA ACT SA NT TAS

TOTAL

696 294 (42%) 167 (24%) 117 (17%) 56 (8%) 19 (3%) 42 (6%) 0 (0%) 1 (0%)
Court Liquidation 60 11 (18%) 25 (42%) 15 (25%) 4 (7%) 0 (0%) 5 (8%) 0 (0%) 0 (0%)
Creditors’/Members Voluntary Liquidation 557 250 (45%) 128 (38%) 82 (15%) 45 (8%) 19 (3%) 33 (6%) 0 (0%) 0 (0%)
Voluntary Administration 79 33 (42%) 14 (18%) 20 (25%) 7 (9%) 0 (0%) 4 (5%) 0 (0%) 1 (1%)

Rodgers Reidy is one of the foremost providers of insolvency, forensic and reconstruction services to distressed businesses throughout Australia, New Zealand and Asia. With a strong commitment to integrity and the community, Rodgers Reidy provides a professional and quality service, offering innovative, cost effective solutions. Please contact any of our directors by clicking the appropriate office below for an initial consultation free of charge.

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