FTI Consulting Notes Some Signs of Improvement in Insolvency Data
Appointments in mining economies remain at elevated levels but trending down year on year
The release of the ASIC Insolvency Statistics for the month of July 2016 shows that while the number of companies entering external administration in Australia has increased from 755 in June 2016 to 771 in July 2016, the overall trend is improving with the number of companies still well down on the 944 companies recorded in July 2015.
The year to date numbers show a continued overall decrease in the number of companies entering external administration with 5,160 in the calendar year to date, well down on the 5,649 recorded over the same 7 month period in 2015.
The mining economies of Western Australia and Queensland both experienced a monthly rise with Western Australia increasing from 78 appointments in June 2016 to 89 in July 2016 and Queensland increasing from 134 in June 2016 to 179 in July 2016. However, this rise may in fact be a seasonal rise and it is worth noting that in WA the rate of external administration appointments has actually reduced year on year from 98 in July 2015 to 89 in July 2016.
“ASIC’s Insolvency Statistics for July 2016 confirm an improvement in the overall trend in insolvencies with the number of companies entering external administration in Australia well down year on year,” said Mike Ryan, Senior Managing Director, Corporate Finance & Restructuring at FTI Consulting.
Senior Managing Director, Head of Asia Pacific Mining and Mining Services