The number of companies and individuals who filed for bankruptcy reached 2,224 in the first quarter of 2012, the highest since the start of the crisis.

The declarations of insolvency of Spanish companies and individuals reached a record high in the first quarter after recording a 21.5% increase compared to the same period in 2011. 31.3% of bankrupt companies belonging to the construction and property development.

Record insolvencies of businesses and families

The number of companies and individuals who filed for bankruptcy (formerly suspension of payments) and bankruptcies totaled 2,224 in the first quarter of 2012, a figure which rose by 21.5% compared to the same period last year and is the highest since the start of the economic crisis . The insolvent companies in Spain reached 1,665 contests. Families that went bankrupt between January and March increased by 83, 10.7%, while the number of insolvent companies rose 24.9%, according to Statistics Bankruptcy Proceedings of the National Institute of Statistics published on 8 May. In 2011 and reached the record figure of 6,755 insolvencies , 13.3% from the previous year.


Meeting of creditors

Meeting of creditors joined between January and March this year 1958 procedures of both companies and individuals with business and legal. 75.3% of insolvent companies in the first quarter of 2012 are Limited Liability Companies. Furthermore, only 12.9% of insolvent companies are in a control group. This is a new record in the last eight years, under Table Insolvency prepared by PricewaterhouseCoopers ( PwC ). Depending on the type of arrangement with creditors who underwent the first three months of the year, there were 2,105 voluntary procedures, 22.3% more than the same quarter of 2011, and 119 needed, up 9.2%. Based on the type of procedure, the ordinary rose 146.9%, while the abbreviated contest rose 11.7% year on year.

Construction and property development, 31.1%

31.3% of companies declared bankrupt in the first quarter of this year, a total of 612 belonged to the construction and promotion real estate , the most affected. This steady increase is due to the exhaustion of the first and second refinances that were undertaken in 2008 and 2010 on the basis of business plans impossible to meet. Behind these two areas were located and the energy industry (367 procedures, 18.7%) and trade (347, 17.7%). As the number of workers, 60.6% of bankrupt companies is concentrated in the sections from one to 19 employees. According to PricewaterhouseCoopers, the number of employees affected by the declarations of insolvency increased by 8% (2,556 workers) compared to 2011.

Catalonia, with 495 head competitions

Catalonia’s autonomy over bankruptcy , with a total of 495 during the first quarter of 2012. It was followed by Valencia, who recorded 335, with 242 Madrid, and Andalusia came to 226. However, among the communities with fewer statements contest from January to March this year, are located Cantabria, with only 21 declarations of insolvency, La Rioja, with 23 procedures, and Extremadura, with 27 contests.

67.1% of bankrupt companies is on the lower stretch of turnover used by the INE, which includes companies that earn less than two million euros. The partner in charge of PwC’s restructuring adviser, Henry Bujidos, said in remarks published on April 9 on the website of Europa Press that ” increases in the last two quarters of 2011 (26% and 28% respectively) followed the increase of 21% in the first quarter of 2012, are foreseeable with a high activity in bankruptcy, removing any sign of recovery . ”