ASIC Review Finds Limited Assets Leave Creditors With…
By Rick Steves
AI summary of the source article
An ASIC review of 26,664 insolvent liquidations revealed that roughly half realised gross assets of A$10,000 or less. Consequently, ordinary unsecured creditors received no dividends in 88.1% of finalised liquidations.
Why it matters
The findings matter to creditors and policymakers assessing how the insolvency system works in practice, as "if most cases involve limited assets, the prospect of recovery may be small even where creditors have valid claims."
Key facts
- ASIC Report 843 examined 26,664 liquidations between 1 July 2021 and 30 June 2025, with about half realising A$10,000 or less in gross assets.
- No dividend was paid to ordinary unsecured creditors in 88.1% of finalised liquidations.
- Only eight simplified liquidations were adopted in 2024–25, accounting for about 0.2% of creditors' voluntary liquidations with liabilities of A$1 million or less.
Source excerpt · FinanceFeeds
ASIC’s new review of insolvent liquidations found that many companies entered the process with few assets available to repay creditors. Report 843 examined 26,664 grouped appointments between 1 July 2021 and 30 June 2025, comprising 7,023 court liquidations and 19,641 creditors’ voluntary liquidations. The Australian regulator said the report provides its first publication at this level of detail…