Home topics news Credit: Melinda Gimpel News News Early action key to saving businesses through restructuring, experts say Yajush Gupta February 9, 2024 Australian businesses are facing a wave of insolvencies, with court-ordered wind-ups surging 133% in the first half of the 2024 financial year. Experts warn that the trend is likely to continue as creditors like the ATO and major banks clamp down on unpaid debts. However, there is a glimmer of hope: those businesses taking early action and exploring restructuring options, such as the Small Business Restructuring (SBR) regime, are showing greater success in weathering the storm. In the first half of the 2024 financial year, court wind-ups increased 133% compared with the previous corresponding period – and it’s a trend that’s likely to continue as creditors like the ATO and the Big Four banks crack down further on unpaid debts, according to the latest Corporate Insolvency Index from Insolvency Australia . In the six months to December 31, 2023, external administrator and controller appointments rose by 24 per cent compared with the previous corresponding period, the Corporate Insolvency Index shows. New South Wales had the most insolvencies over the six months, recording total appointments of 3,141; while Victoria recorded 1,564 appointments; Queensland 1,092; WA 397; SA 182; the ACT 135, Tasmania 23; and the Northern Territory 7. Creditors voluntary wind-ups accounted for the majority of appointments (2,308), followed by Court-enforced wind-ups (1,076), voluntary administrations (731), and controller appointments (416). “The ATO and the banks, in particular, are