Business breakdown no more common

Ian Rogers
Business insolvencies are an increasingly frequent item in the daily noise of media reporting, or so it would seem, but official data on the incidence of business breakdown suggests any increase has plateaued or even dropped away.

Data published yesterday by the Australian Securities and Investments Commission shows the number of companies appointing external administrators fell to 810 in the month of April 2009, steady with an average of 800 over the first quarter of this year. The average was 713 companies entering external administration in the second half of 2008.

ASIC data on insolvency appointments for all reasons also fell to 1227 in April, steady with the average incidence during the first quarter of 2009. The average was 1335 over the second half of 2008.