In the 4^th quarter of 2022

Number of incoming cases in the 1^st instance courts of the District of Madeira related to bankruptcy, insolvency and recovery of companies had a quarterly increase and remained unchanged on year-on-year

According to the information provided by the Directorate-General for Justice Policy (DGPJ), the number incoming cases of bankruptcy, insolvency, and company recovery cases in the District of Madeira increased by 7.8%, i.e.from 51 in the 3^rd quarter of 2022 to 55 cases in the 4^th quarter of 2022. Compared to the same quarter of last year, the number was the same. There was a drop of 21.4% compared to the same quarter of 2019.

In the 4^th quarter of 2022, there were 55 closed cases, of which 49 (89.1%) ended in bankruptcy or insolvency. This marks an increase in the number of bankruptcy/insolvencies over the previous quarter (46) and over the same quarter of the last year (43), corresponding to increases of +12.2% and +17.0% However, there was a decrease of 36.8% compared to the 4^th quarter of 2019.

Regarding the type of legal person involved in the bankruptcies/insolvencies, natural persons accounted for a larger share (81.6%) than legal persons. Specifically, of the 49 decreed bankruptcies/insolvencies in this quarter, 40 involved natural persons and 9 involved legal persons. This result aligns with the usual trend, with the exception of the 2^nd quarter of 2020, when the number of bankruptcies/insolvencies decreed for legal persons exceeded that of natural persons.

Annual number of incoming cases in 2022 increased when compared with last year

The annual analysis of the data indicates that there were positive changes in the number of incoming (235) and closed (239) cases of bankruptcy, insolvency and company recovery proceedings o +19.9% and +14.4%, respectively (-23.5% e -24.6% compared to 2019, by the same order). The number of completed cases was higher than the number of new cases, which led to a reduction of pending cases of -12.5% (3.4% lower than in 2019).

Regarding the declared bankruptcy/insolvency cases, there was an increase of 17.7% between 2021 and 2022, but a reduction of 20.1% compared to 2019. In terms of the type of person involved, in 2022, the total number of cases of natural persons (81.7%) was higher than that of legal persons (18.3%). However, the proportion of natural persons increased again in the reference year with the highest proportion in the available time series (which starts in 2015).

When considering the class of values of declared bankruptcy/insolvency cases, the information requested to DGPJ by DREM showed that the class "Between 10,000 euros and 49,999 euros" had the largest share of total cases (36.1%), followed by the class "Between 5,000 and 9,999 euros", with 27.9%. The other two classes, "Up to 4,999 euros" and "50,000 euros or more", were the least representative, together accounting for 36.1% of all cases. Compared to 2021, there were changes in the importance of the four classes under review, with the class "Up to 4 999 euros" being the largest with 33.9% of total cases. In 2019, the dominant class was "Between 10,000 euros and 49,999 euros", with 33.2%.

Finally, when looking at the Classification of Economic Activities of the private legal persons involved in the declared insolvency proceedings in 2022, 30.0% were classified as wholesale and, retail trade and repair of vehicles and 25.0% as accommodation and food service activities.

Back

• Prev
• Next