Is the Tsunami finally upon us?

Ever since the onset of the COVID-19 pandemic in March 2020, media and industry commentary in the insolvency and restructuring space has been dominated by talk of a pending tsunami of insolvencies and the effect "zombie" companies may eventually have on the overall business landscape.

Earlier in January this year, I wrote about a sense of Deja Vu (HERE) where in my view, the economic headwinds were continuing to gather pace albeit with business being in a position where their bank accounts weren't as healthy as they were when the government support taps were flowing.

As we are all aware, formal insolvency appointments have been down substantially through to the end of the December 2021 quarter overall since March 2020. However, several signs have emerged in the December 2021 quarter, particularly in the construction industry, that point to a significant shift in the prevalence of appoints that have now flowed through into the March quarter of 2022.