Winding Up Applications
Another big month with the 3rd month in a row posting new highs in winding up applications. This high was in large part driven by the IRD pushing through application before the Christmas closedown making up 87 of the 125 applications. All other creditor applications has remained constant when compared to the last three months in the high 30’s. We expect this drive from IRD to continue into November in a race to collect funds and apply pressure to derelict debtors before the courts close. It is important to keep in mind however that while this is a high when compared to the last five years it is off a very low base.
The year-to-date applications (972) is eclipses the last five years yearly total and reinforces the point that this increase continues off a very low base from the 2020 lockdowns.
Personal Receiverships
October saw a further 5 personal receiverships, all from the same lender who has made up 19 of the 41 personal receiverships in 2024. There has been a total of 44 personal appointments for the rolling past 12 months. Lenders who have taken personal general security agreements from borrowers continue to make appointments when borrowers and their companies default.
Why have we seen this increase in personal receiverships that historically was not the case, one of the reasons is likely the difficulty and time it takes to enforce personal guarantees while a personal general security agreement allows the lender almost immediate access on default to the borrowers assets.
Company Insolvencies – Liquidations, Receiverships, and Voluntary Administrations
With the normal October dip as we head to the end of the year we remain above past Octobers. The Official Assignee once again took the largest amount of appointment in the month taking 72 appointments.
Total insolvency appointments for the year continue to track up in line with 2015/2016 figures. Month on month October had 244 total appointments, well above the long-term average of 163 and past September’s (2023: 171, 2022: 146, 2021: 112, 2020: 114, 2019: 139, 2018: 166, 2017: 177)). With 2331 appointments in the year to date we are above full year figures back to 2018. We expect the higher insolvency appointment levels will continue into 2025 at least due to a large backlog at IRD and a struggling economy in most sectors.
Solvent liquidations remain well below the long term 13% with the lost 10% picked up by court appointments whose long term average is traditionally 26%. This is a flow down from the strong winding up application in the year to date.