Business Defaults Forecast

Corporate Collapse Crisis

Alex Turner-Cohen’s article late last year investigated the rise of corporate collapses and the worrying outcomes that show creditors in most cases receive very little. In July 2023 the Parliamentary Joint Committee on Corporations and Financial Services, led by Senator Deborah O’Neill, looked into the “effectiveness of Australia’s corporate insolvency laws in protecting and maximising value for the benefit of all interested parties and the economy”. They found that Australia’s corporate insolvency system is “overly complex, difficult to access, and creates unnecessary cost and confusion for both debtors and creditors”.  Shabnam Amirbeaggi agreed with that finding. The article, “New data shows liquidations are surging, most businesses can’t pay back debts as corporate collapse crisis deepens” is well worth a read.