/ 14 December 2006

Figures show decrease in liquidations, insolvencies

The total number of liquidations recorded for the first eleven months of 2006 decreased by 8,9% – from 3 029 to 2 760 — compared with the first eleven months of 2005, Statistics South Africa (Stats SA) reported on Thursday.

The aggregated total of the number of liquidations (2 760) for the eleven months (January 2006 to November 2006) is the lowest compared with the same period for the years 2000 until 2006, Stats SA said.

In contrast, the total number of liquidations recorded for November 2006 reflected a 33,8% increase (from 234 to 313) compared with November 2005.

The decrease of 8,9% in the total number of liquidations for the first eleven months of 2006 compared with the first eleven months of 2005 was due to decreases of 36,4% (from 506 to 322) in compulsory liquidations and 3,4% (from 2 523 to 2 438) in voluntary liquidations.

The increase of 33,8% in the total number of liquidations for November 2006 compared with November 2005 was due to an increase of 37,4% (from 187 to 257) in voluntary liquidations and 19,1% (from 47 to 56) in compulsory liquidations.

The total number of insolvencies recorded for the first ten months of 2006 also decreased, by 10,7% (from 1 298 to 1 159), compared with the first ten months of 2005.

The aggregated total of the number of insolvencies (1 159) for the ten months (January 2006 to October 2006) is the lowest compared with the same period for the years 2000 until 2006.

The total number of insolvencies recorded for October 2006 decreased by 26,2% (from 122 to 90) compared with October 2005. — I-Net Bridge