Bankruptcy transactions skyrocket, up 30% | Legal

Bankruptcy transactions skyrocket, up 30% |  Legal

Companies have suffered the blows of the crisis caused by the Covid pandemic, and then the Russia-Ukraine war. Bankruptcy statistics released in the last quarter of this year already reflect alarming numbers. According to the figures, the total number of bankrupt debtors increased by 30 percent compared to the previous year. This period coincides with a period of great insecurity with the end of the Government’s moratorium to mitigate the effects of the pandemic (the grace period for bankrupt companies ended on September 1st) and rising energy prices and rising inflation. .

This Tuesday, official data on bankruptcy proceedings (former bankruptcies) initiated by the Registrar’s Association between July and September were made public. In addition to confirming a 30% increase in companies that went bankrupt compared to 2021, the report underlines that the number of entrepreneurs on the tightrope is increasing by more than 80% per year.

In the words of José Miguel Tabarés, vice dean of the Registrars’ Association, “the data reflects a moderate increase in the number of bankruptcies, which is not good news, but it is expected to be true. Compared to the previous quarter, the increase does not reach double digits and recorded in the last quarter, which may mainly be related to the end of the bankruptcy moratorium. Tabarés is cautious and does not foresee disaster: “We will need to pay attention to the data for the coming quarters to see the scale of the problem.”

Statistics for the third quarter of 2022 show that nearly two thousand companies (1,829) filed for bankruptcy voluntarily, but only 23 did so compulsorily, which is 76.9% more than in 2021 (data that could be affected by its removal) above stated bankruptcy moratorium). Sequential bankruptcies, that is, bankruptcies that occurred when an agreement could not be reached with the creditors, also increased. Specifically, there were 5.3% more registrations than last year.

The number of companies that went bankrupt reached 3,108 with an increase of 30% compared to the same period of the previous year and 9% compared to the previous quarter.

Also significant is the 69% increase in so-called “open” bankruptcies, in which creditors decided to liquidate companies go to court without collectible assets.

Small businesses are falling

According to this statistic, the businesses most affected by the economic crisis are limited liability companies (92.4%), companies eight years old or younger and low turnover (48% of bankrupt companies are at the lowest level). brackets, up to 250,000 Euros). That is SMEs. Another piece of information: 55.1% of total companies declared bankrupt have less than six employees on their payroll, and 24.9% of them have no employees.

The main economic activity of 23.8% of the companies that declared bankruptcy is trade, 15.3% construction and 13.8% manufacturing industry.

On the other hand, 22.7% of the total companies that declared bankruptcy in the third quarter are 20 years or older, and 48.1% are eight years old or younger. In trade by sectors, 22% have twenty years or more seniority, 49.6% have eight or less seniority. In Professional Activities, 44.1% of those who went bankrupt are eight years old and under.

Catalonia is the region where this SME fabric is most destroyed. The Catalan community tops the list of companies that went bankrupt this quarter with 937 companies, followed by Madrid (516) and Valencia Community (401). 59.7% of the total paid debtors are concentrated in these three regions.

#Bankruptcy #transactions #skyrocket #Legal

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Written by Adem

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