Insolvencies setting new records
The number of corporate insolvencies in Australia and the cost of those insolvencies are setting new records, and continuing to run at over four times pre-GFC levels, a new report has found.
Company liquidation business Dissolve said bad debts for Australian banks totaled $5.6 billion in the June quarter, up from $5.1 billion in the March quarter and the average pre-GFC level of $1.1 billion.
Dissolve said the number of companies entering some form of insolvency administration in calendar year 2011 continues to set new records.
The months of March, April, June and July 2011 have been the highest ever for each of those months. The calendar year to July 2011 is also the highest ever.
In the year to July 2011 there were 1,355 appointments by secured creditors, which Dissolve said would be predominantly banks appointing receivers. That is the highest number on record.
An analysis on a state-by-state basis reveals significant deterioration in some states with Tasmania up 80 per cent and Western Australia up 69 per cent.
There was a more moderate increase in insolvencies for Victoria (up 17%), South Australia (up 25%) and Queensland (up 24%). New South Wales is only up 4%.