Shocking new statistics show that creditors owed money from a company collapse have no choice but to write off their losses completely in the overwhelming majority of cases.
The Australian Securities and Investments Commission (ASIC) published its annual corporate insolvency statistics earlier this week, revealing that small and medium sized business have “dominated” the external administration sector for 2023.
But shamefully, in 96 per cent of these cases, only between zero and 11 cents is recovered for every dollar owed to out-of-pocket creditors, Australia’s corporate regulator found.
Let me break that down for you. If you are owed, say, $100,000 when a business goes bust, you would be lucky to get back a single cent. Best case…
