Small drop in Galway’s rate of insolvencies

The number of companies declared insolvent in Galway City and County in the first nine months of 2014 dropped slightly on the same period last year.

Statistics compiled for the Connacht Tribune for the first nine months of the year – the most up-to-date available – shows there were a total of 44 insolvencies recorded in Galway.

That figure is down from the 46 recording during the same nine-month period in 2013, from 77 in 2012, 81 in 2011 and 72 in 2010.

The total figure includes court liquidations, creditors’ voluntary liquidations, receiverships and examinerships. The statistics were provided to the Connacht Tribune by insolvencyjournal.ie which is owned by Deloitte, the country’s biggest specialist insolvency practice. The figures for Galway (the city and county combined) show there were 16 insolvencies in the first quarter; 19 in the second quarter and nine in the third quarter.

Comparative insolvency figures for other counties for the first nine months of 2014 show Dublin had 401;Cork had 89; Limerick had 41 and Waterford had 17.

Elsewhere in Connacht, Mayo recorded 20 insolvencies; Roscommon had eight; Leitrim had nine; Sligo had seven and Leitrim five.

There were a total of 942 business insolvencies nationally up to the end of September.

In a court-appointed liquidation, a liquidator is appointed by the High Court on foot of a petition by a creditor to wind up the company. Creditors’ Voluntary Liquidations occur when the company is insolvent and cannot meet its debts as they fall due.

Examinership is a process where the High Court affords protection to a company, which allows it ‘breathing space’ to restructure in an attempt to survive – and usually sees creditors paid a percentage of what they are owed.

A receiver is usually appointed by a secured creditor who has a significant ‘charge’ registered over a company’s assets – the company continues to trade as the receiver attempts to realise the assets and repay the creditor.