Corporate insolvencies down 25% in May

The number of corporate insolvencies fell in May comparied to the previous month, according to new figures released today.

Latest information from insolvencyjournal.ie show 122 appointments recorded during the month, a decrease of 25% on April’s figure of 162.

The total number of corporate insolvencies for the first five months of 2011 was 680, an increase on the same period last year of 3%.

“The 25% month on month decrease is welcome; however it may be premature to believe that the bottom has been reached with regard to the number of corporate insolvencies as the year on year comparison is continuing to show an increase,” said Ken Fennell of kavanaghfennell, the firm which compiles the data.

“The prediction for 2011 remains that there will be no decline on the 2010 corporate insolvencies”.

Creditor’s Voluntary Liquidations saw a 32% decrease from 136 in April to 92 in May. Receivership appointments in May continued to remain high with 23 appointments compared to 24 in April; however there were just two appointments of a Statutory Receiver compared with five during April.

Meanwhile eight examinerships have been recorded so far this year, the same amount for the first five months of 2010 but a decrease of 27% on the same period in 2009.

Some high profile receiverships during May included the Grehan brother’s assets which included the Glenroyal Hotel, there were also the receiverships of Maxwell Motors and the company owned by Independent TD Mick Wallace, M&J Wallace. May also saw an Official Liquidator appointed to the West County Hotel (Ennis) and the examinership of X-tra Vision Limited was confirmed, after the company petitioned to have an examiner appointed in April.

“The overall totals are up on the previous year but perhaps we are beginning to see some improvements from the preceding month’s highs” Mr Fennell commented.