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Asic Publishes Annual Review of Corporate Insolvencies

January 29, 2015
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Each year the Australian Securities & Investment Commission (“ASIC”) publishes a report detailing corporate insolvencies for the previous year.

 At a time when businesses are struggling post-GFC and dealing with low business and consumer confidence it is an unfortunate bi-product that corporate insolvencies increase.

 The latest ASIC review for the 2013-2014 financial year reveals that:

  • small to medium size companies featured most in external administrator’s reports; unsecured creditors affected by small to medium size corporate insolvencies typically
  • received between 0-11 cents in the dollar by way of a dividend;
  • construction companies represented a higher proportion of insolvencies than retail companies;
  • the top cause of failure nominated by directors of insolvent companies was lack of cash flow

MST has expertise in:

  • assisting creditors to take action against debtors including bankruptcy of individuals and winding up companies;
  • acting for insolvency practitioners;
  • advising debtors on how to deal with creditors;
  • assisting debtors to defend or respond to bankruptcy or winding up applications.

For more information, please contact our Dispute Resolution & Litigation team by email litigation@mst.com.au or by telephone +61 8540 0200.

 



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