Total number of corporate insolvencies levelling out in first nine months of 2016
Services industry sees 104% increase
There were a total of 765 insolvencies in first nine months of 2016.
Statistics from the first nine 2016 suggest that overall corporate insolvencies may be levelling out in Ireland. The number of appointments to date in 2016 totalled 765, a 3% increase on the same period in 2015.
- The service industry, which recorded the most insolvencies in the first nine months of 2016 with 220 appointments, more than doubled from the same period last year and represents 26% of this period’s total
- The construction industry recorded the second highest level of appointments with 133 (17%). This is an increase of 45% from the same period last year.
- The hospitality, retail and manufacturing industries had 11%, 10% and 6% of the appointments respectively with the balance coming from other industries.
- The highest number of corporate insolvencies in the period was recorded in Leinster with 66% of total appointments. Munster had 23% of appointments, Connaught 9%, and Ulster just 3%.
- Of the 765 corporate insolvencies, creditors’ voluntary liquidations accounted for the majority, with 448 recorded in the period (59%). Receiverships accounted for 274 (36%) of the total corporate insolvencies in the first nine month of 2016, up 41% on the same period last year.
- There were 32 court liquidator appointments in the current period and just 11 examinership appointments.
David van Dessel, Partner, Restructuring Services, Deloitte commented: “The large increase in receivership appointments represents an interesting change in the mix of insolvencies. However, despite this change, we are still not seeing an uptake in the levels of examinerships. The recent successful examinership of Druid’s Glen shows that where a business is viable, examinership is a very effective rescue tool.” For smaller SMEs there are still options to explore this type of restructuring through use of the “super-lite examinership”, s.450 schemes of arrangement. This is a cheaper option with less court involvement that affords struggling companies a real chance at survival.