Stay informed with the latest in insolvency news and industry updates. We can keep you up to date with insolvency and finance information from around the world.
In short:Regional carrier Rex has entered into voluntary administration but will continue to fly regional routes.Some Australian politicians have taken
Source: Australian Securities and Investments Commission The construction sector has been hit particularly hard, with construction firms leading industry insolvencies
Chinese police have opened an investigation into Zhongzhi Enterprise Group after the debt-ridden financial giant declared itself insolvent.
Police in Beijing, where the group is headquartered, said late Saturday they had opened an investigation into unspecified “alleged offenses,” adding that they had taken measures against several suspects.
Zhongzhi declared itself insolvent Wednesday with its arrears estimated at nearly $66 billion, according to a letter to investors cited by local media.
During China’s real estate boom, many developers used Zhongzhi to finance their projects.
The company managed assets worth more than $141 billion, according to investment bank Nomura.
A bank in Sac City was declared insolvent and closed at the end of last week.
According to a press release by the Iowa Division of Banking, Citizens Bank in Sac City was closed on Friday. It’s the first bank closure in Iowa in 12 years. The bank was declared insolvent after bank examiners identified significant loan losses that the bank previously had not identified.
According to the news release, the bank had a concentration of out-of-state loans to one industry, and there had been heavy losses on some of those loans. The state banking superintendent’s office says there will be no loss to depositors. Citizens Bank in Sac City reportedly had nearly 59 million dollars in deposits when it closed.
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Looking into the crystal ball at the start of the year to forecast future trends isn’t possible, but one common theme that we expect will continue to impact upon both directors and officers and insolvency practitioners (IP) is the increasing rise of corporate insolvencies.
The Insolvency Service recently published its monthly report for insolvencies in December 2023, which reveals an increase in company insolvencies, reaching 2,002 cases – a rise from previous years and pre-Covid 19 times. In contrast, individual insolvencies evidenced a different trend, marking a 20% decrease with 6,584 reported cases in December 2023 as compared to the same month in the previous year.
EMDEs (excluding China) need a major investment push to achieve the 2030 Agenda and the Paris Agreement. An Independent Expert Group to the Group of 20 (G20) estimates that EMDEs excluding China will need to mobilize $3 trillion annually, $1 trillion from…
The Coalition has accused the government of laying waste to the manufacturing industry, citing an increase in the number of company insolvencies on Labor’s watch.
In a January 16 opinion piece published in The Australian, Deputy Opposition Leader Sussan Ley blamed Prime Minister Anthony Albanese’s “lack of an economic plan, failed industrial policies and distracted priorities” for turning manufacturing in Australia into an “industrial graveyard”.
“Today manufacturing insolvencies are about three times higher than the same period just two years ago. We are making less things here, not more,” she said.
So, have manufacturing company insolvencies tripled in the past two years due to the policies of the Labor government?
This overview is excerpted from Manatt on Health, Manatt’s subscription service that provides in-depth insights and analysis focused on the legal, policy and market developments.
On July 26, Centers for Medicare & Medicaid Services (CMS) approved North Carolina’s plan to condition enhanced Medicaid payments on hospitals’ participation in a statewide medical debt relief policy initiative. Hospitals that agree to implement a set of medical debt mitigation policies established by North Carolina’s Department of Health and Human Services are eligible for enhanced reimbursement through North Carolina’s Medicaid state directed payment (SDP) program. North Carolina is the first state to use SDPs to incentivize hospitals to address…
ASIC’s annual insolvency data shows more than 11,000 companies entered external administration for the first time in 2023-24. While this is slightly higher than prior peaks seen in 2011-12 and 2012-13, it is proportionately smaller as there are now nearly 3.4 million companies in Australia compared to around two million in 2012.
The current ratio of companies entering external administration compared to the number registered (0.33%) is still below 2012-2013 (0.53%) levels.
Overall, the number of external administrations grew by 39% in 2023-24 compared to 2022-23. The top three industries – Construction (27%), Accommodation and Food Services (15%) and Other Services (9.3%) represented over half of total external administrations for…
Regional carrier Rex has entered into voluntary administration but will continue to fly regional routes.
Some Australian politicians have taken aim at Qantas for putting pressure on Rex by flying those regional routes.
What’s next?
An analyst says Rex could survive if it concentrates on regional routes.
As Rex Airlines enters into voluntary administration, some Australian politicians have taken aim at rival carriers Virgin Australia and more specifically Qantas for their behaviour in the aviation sector.
The regional carrier removed the option for travellers to book flights on some routes on Tuesday afternoon, after having halted trading on the ASX on Monday.
Source: Australian Securities and Investments Commission
The construction sector has been hit particularly hard, with construction firms leading industry insolvencies in every quarter since mid-2021. They have accounted for approximately 25% of all insolvencies during this period. The residential construction sector is already facing a backlog of projects to complete as a result of skills and material shortages in recent years, and increased insolvencies in the sector may only exacerbate the problem of housing shortages.
The food & accommodation sector has also experienced a wave of insolvencies. High input costs, worker shortages, and weak consumer sentiment have put pressure on businesses. Specifically, in March,…
