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Press release: The number of bankruptcies reached a low-crisis level

15. Mar 2016

As a panel survey of Estonian bankruptcies conducted by Krediidiinfo shows, last year 376 companies were declared bankrupt, which is 12% (52 companies) less than last year. The number of bankruptcies has been steadily decreasing for the fifth consecutive year and currently reached a low pre-crisis level. 

Data for the first two months of 2016 also shows continuation of this trend – the number of bankruptcies in the first two months of this year decreased by more than 15% compared to the same period of the last year. 

In 229 cases of insolvency bankruptcy as such was not declared and the companies were simply liquidated. Thus, in 2015 the share of businesses with no property at all out of all bankrupt companies remained at a high level of 61%, although this figure has been steadily declining for several years (of the total number of bankruptcies the share of companies with no property was 64.5% in 2014, 67% in 2013 and 70.5% in 2012). 

On average, the number of bankrupt companies last year was 1.9 per thousand, i.e. every 536th company went bankrupt (every 450th company a year earlier and every 390th company in 2012). The highest rate of bankruptcies is traditionally observed in the areas of accommodation and catering, as well as construction and processing industry, where the number of bankruptcies was, respectively, 5.2, 3.9 and 3.3 per thousand businesses. 

Raplamaa was the county with the highest number of bankruptcies (2.9 bankrupt companies per thousand). The lowest number of bankruptcies was registered in Jõgevamaa, Võrumaa and on Saaremaa. 

Six out of ten largest bankrupts of 2015 were engaged in wholesale trade: Euroimport AS, Koiv-Impex OÜ, B.W.T King AS, JGC Forest OÜ, Metexcom OÜ and Nation Capital Finance OÜ, while four in transportation services: Estonian Air AS, Baltcom OÜ, Avies AS and Brokmak OÜ. 

The largest bankruptcy of the past year was that of Estonian Air AS, which significantly affected statistics for the entire year. 
See our blog “Bankruptcy statistics for the past year has the face of Estonian Air” 

On average, a bankrupt company of 2015 had nine employees, its sales revenue amounted to 0.2 million euros, equity capital was minimal and the company was operating at a loss. Many of them had a growing or permanent tax debt during the past year of operation. About 99% of bankrupt enterprises received low ratings from Krediidiinfo (BB, B, C, U) in their last year of active operation. 

Krediidiinfo AS is an international company specializing in credit information gathering, processing and intermediation, while focusing on decreasing financial risks of Estonian companies. Krediidiinfo AS conducts bankruptcy surveys among Estonian companies since 2000. 

Full study is available on our website at: 

Additional information: 
Alar Jäger, CEO of Krediidiinfo AS 
Telephone: 665 9611 
Email: alar.jager@krediidiinfo.ee