Bankruptcies increased 28.6% in second quarter

INEThis is according to new figures released by the National Institute of Statistics (INE) which shows that 30% of those made bankrupt during Q2 were construction and property development companies, confirming the sector is a long way from recovering.

Bankruptcy Proceedings Statistics – Second quarter of 2012

During the second quarter of 2012, the number of debtors processed reached 2,272, representing a 28.6% increase, as compared with the same period the previous year.

By type of proceeding, 2,111 were voluntary (27.1% more than the second quarter 2011) and 161 were necessary (51.9% more). Considering the type of proceedings, ordinary proceedings increased 270.6%, and abbreviated proceedings increased 7.3%.

Companies processed, by legal nature and turnover bracket

Of the 2,272 debtors processed in the second quarter, 2,026 were companies (individuals with business activity and corporations). 77.3% of the companies declared bankrupt were Private Limited Companies.

69.0% of the companies declared bankrupt were within the lowest turnover bracket (less than two million euros), and were mainly Private Limited Companies.

87.8% of companies declared bankrupt during the first quarter of 2012 did not belong to any business group. Of the remaining companies declared bankrupt, 11.9% belonged to a Spanish group, and 0.3% to a group under foreign control.

Companies declared bankrupt, by economic activity and number of employees

30.8% of companies declared bankrupt carried out their main activity in Construction and property development, 18.3% in Industry and energy, and 17.4% in Trade.

Regarding the number of employees, 33.7% of the total number of companies declared bankupt were within the bracket of 1 to 5 employees.

You can see the full press release here: Bankruptcy Proceedings Statistics – Second quarter of 2012