ASIC has just published its annual overview of corporate insolvencies based on statutory reports lodged by external administrators for the 2013-14 financial year.
Report 412 (Insolvency statistics: External administrators' reports (July 2013 to June 2014) provides information on the nature of corporate insolvencies, and summarises information from 10,073 reports received during the 2013-14 financial year. The report also covers ASIC's response to external administrators' reports of alleged misconduct.
The report states that external administrators' reports were dominated by small to medium size corporate insolvencies, with 86 per cent having assets of $100,000 or less, 81 per cent having less than 20 employees and 43 per cent having liabilities of $250,000 (or less). Additionally, the report shows that 97 per cent of creditors in this group received between 0–11 cents in the dollar.
In terms of the industries with the most lodgements, 'Other (business and personal) services' had 2482 reports or (representing 26 per cent), 'Construction' had 2153 reports (representing 23 per cent) and 'Accommodation and Food Services' had 916 reports (representing 10 per cent).