Courtesy of Mish.
Nearly every day I receive emails from “Brisbane Bear” regarding the sorry state of affairs in Australia. Here is another one to consider: Insolvencies for quarter near record high
CORPORATE insolvencies hit their second-highest peak on record in the last quarter, as the aftershocks of the global financial crisis continued to flow through the market, The Weekend Australian’s Anthony Klan reports.
According to the Australian Securities & Investments Commission, there were 2552 insolvencies in the three months to September, which was up 10 per cent on the previous quarter.
In last year’s September quarter, total insolvencies reached a peak after 2961 companies hit the wall.
“All states and territories except the Australian Capital Territory experienced a rise in insolvency appointments compared to the previous quarter,” ASIC executive leader of insolvency practitioners Adrian Brown said.
According to ASIC, all types of insolvency were up on the previous quarter, led by voluntary administrations (up 17.2 per cent) and receiverships (up 13 per cent).
Court-ordered liquidations rose 9.2 per cent in the quarter and director-initiated voluntary liquidations were up 7.8 per cent, according to ASIC.
Receivership appointments were driven by rises in NSW and Victoria, up 25.4 per cent and 14.7 per cent respectively.
In the past three months, voluntary administrations soared 37 per cent in Queensland, followed by Victoria, which was up 19 per cent.
Mortgage funds such as Provident Capital and Banksia Securities were among the highest-profile collapses in the past quarter, owing investors almost $800 million combined.
Just a Start of What’s Coming
I expected this action as did Brisbane Bear who writes “Brisbane is the capital of Queensland so it’s no wonder I am so bearish!”
For a detailed look why this was easily foreseen (notably the China connection and Australia’s housing bubble), please see…
