New record: 311 insolvency proceedings in a single day

Companies restructuring Image from page 185 of "Thackerayana;" (1875)

On 15 November, the Official State Gazette published 311 insolvency proceedings, the highest number in a single day since records began. However, as José Martínez, managing director of the consultancy firm Gesico, explains, “243 insolvency proceedings correspond to individuals, both self-employed and employed individuals who have been forced to apply for the Second Chance Law because they are unable to pay their debts, According to Martínez, “This situation is caused by the continuous fall in economic activity due to the rise in prices and inflation, as well as the end of the grace period for ICO Covid loans, among other factors”.

In the same vein, Axesor has published today its Business Radar of Insolvency Proceedings and Company Creation and Dissolutions and states that last October closed with 5,509 insolvency proceedings, 18% more than those recorded in the first ten months of last year.

By sector and in absolute terms, trade accounts for the highest number of insolvencies. Specifically, 1,212 procedures were registered, an increase of 33.92%. This was followed by construction sector activities, with 828 and an increase of 17.61%. Between them, they accounted for more than 37% of insolvencies in the period. Another key sector is manufacturing, which ranks third with 646 insolvencies and an increase of 25.19%.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.