Business Restructuring Practices Contribute to 18% Decline In Insolvencies Since 2016
Though restructurings on the whole are down, June external administrations point to an emerging upward trend in insolvencies for 2017
FTI Consulting’s latest analysis of the ASIC insolvency statistics for June 2017 notes the number of companies entering external administration continued its steady upward trajectory but year on year total corporate failures remain on the decline.
In June 2017, there were 816 companies entering external administration up from 792 the previous month, and the highest monthly number of appointments for the 2016/2017 financial year. June’s levels were also up year-on-year, with 755 appointments recorded in June 2016.
However, insolvencies nationally continued to decline to a total of 8,031 for the 12 months to June 2017, down 18% when compared with the prior period (12 months to June 2016) where the equivalent number of insolvencies was 9,848 reflecting the continued business restructuring practices of the past 12 months.