External Administrations for 2016 Well Down from the Previous Year’s 10,000+
Continued Slowdown in January 2017 Indicates Reversal of Upward Trend
FTI Consulting’s analysis of the latest ASIC insolvency statistics notes that the continued slowdown in December saw 2016 reverse the trend upwards over the past few years for external administrations. The insolvency statistics for the month of December brought the total for 2016 to 8,505 companies, well down on 2015’s total of 10,164 companies.
In December 2016 there were 504 companies entering external administration down from 636 the previous month, and falling further for the month of January 2017 to 396.
“Over the course of 2016 there was a steady decline in the number of external administration appointments leading to the fall on the figures for the year,” said Joanne Dunn, Senior Managing Director in the Corporate Finance & Restructuring segment at FTI Consulting.
“While the recovery in Australia remains quite sector specific, as can be seen with the difficulties still found in the retail and mining services sectors, some sectors such as tourism are showing signs of improvements.
“Our recent experience with the sale of Port Hinchinbrook in Far North Queensland, while demonstrating there is still demand, it has shown that the process to sell can be protracted,” Ms. Dunn added.