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A survey of practioners and members by Restructuring Insolvency & Turnaround Association (RITANZ) indicated the numbers of appointments of liquidators for January and February at the lowest levels in three years.
"This suggests there may be a number of 'zombie' businesses continuing to operate with the help of government funding, but we may see a number of liquidations in the coming years for those that are unable to repay their debts," RITANZ chair John Fisk said.
"And that's a problem for our economy because essentially we know that they are eventually going to fail and usually once they do, the debts are higher than they would have been otherwise, and also they end up taking business away from good businesses."