Figure 5: BIA Business Proposals in Canada Figure 5: BIA Business Proposals in Canada
100 120 140 160
0 20 40 60 80
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2019
2020
2021
2022
2023
2024
As shown in Figure 3, 2024 started with a high of 759 total business insolvencies in January, followed by a decline through the first half of the year, reaching a low of 460 business insolvencies in June. The second half of 2024 showed a mixed pattern, with a gradual recovery peaking in November at 469 insolvencies before dropping to 394 in the December holiday season. The total number of business insolvencies mirror the trends observed in individual categories of bankruptcy proposals and bankruptcies (see Figures 4 and 5). In total, 2024 had 6,188 business insolvency filings. Compared with a total of 4,810 filings and 3,402 filings in 2023 and 2022, respectively, the 2024 volume of filings represents a 28.6% and 81.9% increase over 2023 and 2022, respectively. In 2024, monthly filings averaged 516, whereas in each of 2023 and 2022, the filings averaged 401 and 284, respectively. We observed relatively more variability in businesses’ choice to pursue bankruptcy proposals rather than bankruptcy filings. This variability may have been the result of increased market uncertainty, which in turn affected the ability of debtors to negotiate terms with creditors, to plan for refinancing or debt consolidation, or to finalize restructuring arrangements at the appropriate time. An uptick in business proposals in Q3 2024 could suggest that debtors saw Q3 as presenting a relatively more favourable window of market or economic conditions over the year to restructure debt obligations.
5
Davies Insolvency Now: Issue 12
Powered by FlippingBook