Companies declared bankrupt increased in 2011

BankruptcyThe National Statistics Institute (INE) has released figures showing the number of debtors in Spain declared bankrupt in 2011 rose 13.3%, compared to the previous year, to 6,755.

The figure includes 5,821 companies (a 16.7% increase) and 934 individuals without business activity declared in bankruptcy proceedings, representing a 3.9% decrease from 2010.

Of the total, 6,472 declared voluntarily (a 14.5% increase from 2010) and 283 were forced (9.3% less).

One in three companies declared bankrupt specified ‘Construction and property development’ as their main activity, confirming the fears that the crisis would have a dramatic affect on the industry.

The Transport and storage industry saw the lowest increase in bankruptcies with only 2.9% compared to 2010. In contrast, Trade was the economic activity which saw the largest increase in bankruptcies, rising 23.4%.

According to type of company processed, the number of individuals with business activity decreased 11.1% in the interannual rate, whereas the number of private limited companies increased 18.2% and public limited companies increased 14.1%. The majority of companies declared bankrupt were private limited companies (76.3%).

According to the figures 65.4% of the companies declared bankrupt operated within the lowest turnover bracket of less than two million euros. This bracket includes all individuals with business activity, 68.3% of private limited companies and 44.1% of public limited companies.

By region the autonomous community of Cataluña saw the highest number of debtors with 1,507 processed. Valencia was next with 995 while Madrid saw 849 bankruptcies. Andalucía processed 784 but together these four regions accounted for more than half of the total debtors (61.2%).

The number of debtors processed in the fourth quarter of 2011 was 1,692 showing a 13.6% increase over the previous quarter.

You can read all the details here: Bankruptcy Proceedings Statistics – Fourth Quarter 2011

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