Company administrations skyrocket in March


The number of companies entering external administration jumped by 64 percent in March compared with the previous corresponding period of 2008

Company administrations skyrocket in March
Company administrations skyrocket in March

The number of companies entering external administration jumped by 64 percent in March compared with the previous corresponding period of 2008, according to Australian Securities & Investments Commission (ASIC) data.

SA experienced the highest rate of growth, with external administrations up by 194 percent to 53, followed by Queensland, which experienced a 156 percent jump to 220.

In sheer numbers, NSW had the largest number of external administrations at 503, up 42 percent, followed by Victoria at 251 (+41.8 percent).

For the year to date the number of companies entering external administration is up by just under 38 percent to 2,408.

By type, court wind-ups rose by 90 percent to 350 in the month, creditors’ wind-ups were up by 60 percent to 386, and appointments of controllers/receiver-managers jumped by 80 percent to 145.

Administrations – whereby directors call in an external controller in a bid to restructure the business and return to normal trading – increased by 27 percent to 206 in March.

Reflecting the dour economic climate, the number of new company registrations is down significantly in the first three months of the year.

Nationally, registrations slipped by 10.5 percent to just under 30,000 in the first quarter of the calendar year.

To read the full data set click here.

To ensure you’re not caught out by customers encountering solvency issues, subscribe to ATN’s exclusive weekly listing of external administrations sourced from ASIC.

Drawn direct from ASIC's database, this weekly listing includes all companies across Australia that have had an external administrator - or had an application to have an external administrator appointed - in the previous week.

Each listing includes key details, namely:

  • Company name
  • ACN / ABN
  • Administration Type
  • State of incorporation
  • Received date.

This invaluable credit management tool is currently not available anywhere else and is being compiled exclusively for ATN subscribers.

To find out more contact Katrina Nicoll at knicoll@acpmagazines.com.au or call 07 3166 2303.

ATN subscribers can access the list of insolvencies for the week ended May 4, 2009 here.

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