The number of companies entering external administration jumped by 64 percent in March compared with the previous corresponding period of 2008
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.
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ATN subscribers can access the list of insolvencies for the week ended May 4, 2009 here.