Insolvency Statistics – April 2014
The construction industry is still booming with consents, particularly in Auckland and Christchurch, reported to be up.
Meanwhile, world dairy prices took a dive. News that hard pressed farmers will not have enjoyed. Those with greater borrowing will also have been dreading the OCR increase which finally took effect with the Reserve Bank signalling further increases as necessary.
In retail, the NZX has threatened Postie Plus with a trading suspension if it misses its earnings reporting deadline. We doubt this is the only retailer struggling in this difficult financial climate.
The New Zealand dollar dropped, mainly due to the dairy price drop, but was holding strong against eh Aussie dollar after the RBA held its rates. The IMF have publically stated that they think the Kiwi dollar is overvalued. No great surprise there as the Kiwi remains one of the most traded currencies in the world.
In the USA, the economy and the financial markets have shown signs of improvement, mostly on the back of Federal Reserve Governor Yellen’s recent comments and also some great manufacturing data.
Finally, the NZ Government opened up eight further areas for oil and gas exploration but also opened themselves up for criticism for doing so.
January, February & March Comparison of
Insolvency Appointments 2011, 2012, 2013 & 2014
What the figures are showing?
- There were 259 liquidation appointments in March 2014 which is comparable to 2013 but well below previous years. 19 receivership appointments, 1 administrations and 239 liquidations were recorded.
- Year to date insolvency appointments for 2014 were 545. This was down significantly on previous years. Liquidations accounted for 511 of those appointments.
- Applications made to the High Court to liquidate companies totalled 117 for March 2014 which is comparable to previous years. Applications made between January and March 2014 were consistent with previous years at 329 of which 229 were made by the IRD.
Year to Date Comparison of Insolvency Appointments 2011 to 2014