Risk Watch Essentials – May 2023.
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BTG Global Advisory 2023 conference
Rodgers Reidy is proud to be a founding member of BTG Global Advisory. The BTGGA 2023 conference was held this month with attendees from around the globe flying into New York including RR representatives from Australia, Singapore and Malaysia. We are delighted to be able to collaborate on cross border advisory matters with our trusted international partners.
Small Business Restructuring
During the month of May 2023, 28 companies appointed a Restructuring Practitioner out of a population of around 990,000 small companies in Australia.
While the graph above demonstrates that there has been a dramatic increase in the number of companies utilising the SBR laws since April 2022, the trajectory of SBRs has declined over the past 2 months which should be surprising. Our understanding of the market is that small businesses are coming under greater and greater financial pressure in the current economic climate. For any small business with an otherwise viable business model, an SBR should be the restructuring tool of choice to relieve historical debt problems. Based on ABS statistics we estimate that there are around 990,000 small companies (0-19 employees) in Australia, so to think that only 28 opted for the lifeline of an SBR in May of 2023 means that the message is just not getting out there that SBR can save your small business at least cost and interruption. Feel free to contact your local Rodgers Reidy office to discuss whether this option is right for your clients.
The tables and graphs below summaries the data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for May 2023.
Winding Up applications filed with the Court in May 2023
| Winding Up applications | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS | ||||||||
| TOTAL | (No.) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) |
| 271 | 71 | 26 | 124 | 46 | 52 | 19 | 13 | 5 | 1 | 0 | 8 | 3 | 1 | 0 | 1 | 0 | |
There were sixty-seven (67) winding up applications filed by the ATO in May 2023 compared with fifty-four (54) in April 2023.
Formal Appointments in May 2023
| Formal Appointments | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS | ||||||||
| TOTAL | (No.) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) | (No.) | (%) |
| 953 | 437 | 46 | 240 | 25 | 144 | 15 | 56 | 6 | 27 | 3 | 41 | 4 | 1 | 0 | 7 | 1 | |
| Court Liquidation | 164 | 65 | 50 | 51 | 31 | 29 | 18 | 7 | 4 | 2 | 1 | 9 | 5 | 1 | 1 | 0 | 0 |
| Creditors’/Members’ Voluntary Liquidation | 616 | 287 | 47 | 151 | 25 | 95 | 15 | 27 | 4 | 20 | 3 | 31 | 5 | 0 | 0 | 5 | 1 |
| Voluntary Administration | 173 | 85 | 49 | 38 | 22 | 20 | 12 | 22 | 13 | 5 | 3 | 1 | 1 | 0 | 0 | 2 | 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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