Receivers appointed to firms double to 62 in April
THE number of receivers appointed to take control of troubled companies doubled to 62 in April. It came as NAMA stepped up the pace of action against large, heavily indebted developers.
Figures published last night showed that 10 companies are now closing down every day as the domestic economy continues to be battered by the economic crisis.
There is an equally worrying fall in the number of new ventures being launched.
That's according to Vision-net, a research provider that tracks company activities in Ireland.
Last night's figures showed that 195 companies, averaging just over 10 companies every working day, were declared insolvent in April.
The research shows that 131 companies filed for voluntary liquidations in April, receivers were put in control of a further 62 companies and there were two court-ordered liquidations.
Vision-net said another 148 companies commenced winding up processes.
Not all companies going out of business are in trouble; in some cases companies are closed as a result of takeovers or retirement, but the high numbers are a sign of weakness in the economy.
Receivers are appointed when companies cannot honour their debts and last month's tally of 62 included high-profile cases where NAMA put its own agents in charge of dozens of companies controlled by property kingpins including Derek Quinlan, Ray Grehan, Jim Mansfield and Liam Kelly.
Vision-net said the overall increase in companies closing sparked a rise in the amount of unpaid debts in the economy. That risks creating a vicious cycle as the companies left out of pocket are in turn put at risk.
The total liabilities of companies that commenced winding up procedures last month was €94m. Vision-net said the majority are likely to be insolvent with retail, hospitality and professional-services companies especially hard hit.
Xtravision video rental chain was the only company placed into examinership in April, after it successfully applied to the High Court and for an interim examiner to be appointed.
Examinership allows insolvent companies protection while they try to trade out of difficulties.