Asic Publishes Annual Review of Corporate Insolvencies
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.