Riskwatch Essentials – July 2022.
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The graph below represents formal appointments from the start of 2017 to June 2022 on a quarterly basis. The graph indicates that the number of formal appointments are starting to increase, however, still have not returned to pre pandemic levels. The increase in formal appointments is likely due to directors taking action to wind up insolvent companies following the end of government support and the increase in ATO activity with the ATO issuing warning letters and director penalty notices to businesses regarding outstanding tax liabilities.
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 July 2022.
Small Business Restructuring
During the month of July, 2022, eleven (11) companies appointed a Restructuring Practitioner in relation to the Debtor in Possession restructuring process for small businesses.
Since 1 January 2021 there have been a total of 93 appointments in relation to Small Business Restructuring,
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 your local Rodgers Reidy office to discuss whether this option is right for your clients.
Winding Up applications filed with the Court in July 2022
| Winding Up applications | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS |
| TOTAL | 131 | 36 (27%) | 64 (49%) | 16 (12%) | 6 (5%) | 0 (0%) | 5 (4%) | 0 (0%) | 4 (3%) |
There were two (2) winding up applications filed by the ATO in July 2022
Formal Appointments in July 2022
| Formal Appointments | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS |
| TOTAL | 838 | 376 (45) | 268 (32%) | 116 (14%) | 36 (4%) | 13 (2%) | 26 (3%) | 0 (0%) | 3 (0%) |
| Court Liquidation | 73 | 16 (22%) | 37 (51%) | 15 (21%) | 1 (1%) | 1 (1%) | 3 (4%) | 0 (0%) | 0 (0%) |
| Creditors’/Members Voluntary Liquidation | 623 | 278 (45%) | 198 (32%) | 89 (14%) | 24 (4%) | 10 (2%) | 21 (3%) | 0 (0%) | 3 (<1%) |
| Voluntary Administration | 142 | 82 (58%) | 33 (23%) | 12 (8%) | 11 (8%) | 2 (1%) | 2 (1%) | 0 (0%) | 0 (0%) |
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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