In the fourth quarter of 2023

Number of incoming cases of bankruptcy, insolvency, and company recovery registered in the first-instance courts of the Madeira District remained unchanged compared the previous quarter but showed a decline year-on-year

According to data provided by the General Directorate for Justice Policy (DGPJ), there were 47 incoming cases related to bankruptcy, insolvency, and company recovery filed in the Madeira District during the fourth quarter of 2023, matching the count from the preceding quarter. Compared to the corresponding quarter of the previous year, which registered 55 cases, there was a reduction of 8 cases.

During the same period, 50 cases were closed, marking a 9.1% decrease from the fourth quarter of 2022. Out of these closed cases, 45 (representing 90.0%) resulted in either bankruptcy or insolvency being declared. This figure for bankruptcies/insolvencies was higher than that recorded in the previous quarter, which was 35, yet lower than the same quarter of the previous year, which was 49.

Concerning the type of persons involved in these declared bankruptcies/insolvencies, the proportion of natural persons in the total number of cases exceeded that of legal entities, comprising 77.8% of the total. Specifically, of the 45 bankruptcies/insolvencies declared during this quarter, 35 involved natural persons, and 10 involved legal persons.

In a year-over-year analysis, the number of incoming cases in 2023 showed a decrease from the previous year. The annual data reveal that both the number of incoming (226) and closed (230) cases during the year indicated negative trends, with a corresponding decline of 3.8% in both instances. It is noteworthy that the number of closed cases exceeded the incoming cases, which resulted in a 14.3% reduction in pending cases.

Regarding the declared bankruptcies/insolvencies, a decrease was observed from 219 in 2022 to 206 in 2023, amounting to a reduction of 5.9%. In terms of the type of person involved in these declared bankruptcies/insolvencies, the proportion of natural persons was 73.8% in 2023, compared to 26.2% for legal persons.

The data requested to DGPJ by the Regional Directorate of Statistics of Madeira (DREM), regarding the value ranges of the cases with declared bankruptcy/insolvency, revealed that the “5,000 euros to 9,999 euros” class held the largest proportion, accounting for 37.4% of the total, followed by the “up to 4,999 euros” class at 34.5%. The other two classes, “10,000 euros to 49,999 euros” and “50,000 euros or more”, were less significant, collectively making up 28.2% of the total cases.

Regarding the sector classification of the private corporate entities involved in insolvency cases, in 2023, 25.9% were related to "Accommodation and food service activities", and 24.1% to "Wholesale and retail trade; repair of motor vehicles".

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