Corporate insolvencies drop by 8%

The number of corporate insolvencies fell by 8% in the first nine months of the year when compared to the same period in 2013.

To the end of September this year, 942 corporate insolvencies were recorded; a reduction of 83 on the previous year’s figures.

Commenting on the results, Deloitte restructuring services partner, David Van Dessel said that while the lower-cost ‘examinership lite’ legislation introduced in December had yet to take off, he hoped to see it become a more viable option for struggling SMEs during the remainder of the year.

“As yet, we have not seen any significant activity around the new examinership-lite legislation, but are hopeful that this process will become an option for struggling SMEs to explore in the remaining months of 2014 and beyond.

“In relation to personal insolvency and rent receivers, current signals would point to an anticipated increase in activity in both these areas,” said Mr Van Dessel.

The motor (28%) and construction (24%) sectors saw the greatest reductions in insolvencies in the year to date — falling to 23 and 198 respectively.

Both the retail and hospitality sectors experienced reductions too.

The trend was reversed for IT and transport sector firms, however, both witnessing significant double-digit increases of 35% and 29% respectively.

With regards to the types of insolvencies, there was a reduction in creditors’ voluntary liquidations of 11% (703 to 624) and in receiverships of 6% (261 to 244), with increases in both court liquidations of 23% (47 to 58) and a marginal increase in examinerships of 14% (14 to 16).