THE NUMBER of insolvencies fell for the third consecutive month in May, although the rate of insolvencies is still 25 per cent higher than the same period last year, new data shows.

Figures released yesterday by InsolvencyJournal.ie, a website run by accountancy firm Kavanagh Fennell, show that 112 insolvencies were recorded in May, down 26 per cent from the 2010 year high of 151 recorded in February.

Construction companies continue to experience the highest level of insolvencies, although the number was down significantly from the previous month. Twenty-eight construction businesses became insolvent in May, compared to 40 in April.

According to Ken Fennell of Kavanagh Fennell, the transfer of the first tranche of loans into Nama could have been a factor in the low levels of insolvencies recorded in the construction industry last month.

On an annual basis, however, the rate of insolvencies in the sector is higher this year compared to last – 194 construction companies became insolvent between January and May this year, compared to 180 during the same period last year.

The number of insolvencies also declined in the retail, services and wholesale industries, while hospitality, manufacturing, motor and transport sectors all saw a rise.

Receivers were appointed to 16 companies in May, compared to 12 in April.

This brings the total number of receiverships so far this year to 91, a threefold increase on the 36 recorded last year.

Eight companies have entered examinership so far this year, compared to 10 during the same period last year.

The report sees the low level of examinership as evidence of the high bar being set by the courts with regards to granting court protection.