Insolvency

Liquidators - They're not all bad

July 3, 2020
Is someone you know avoiding a conversation about liquidation, or even bankruptcy, because of the stigma they feel is attached to it? Are they ignoring phone calls, letters, and emails, because it’s just another person asking them for money? Or have they been responding, but then receiving follow-ups because they haven’t kept the promises they’ve made?

Worried about your creditors?

April 14, 2020
Finance Minister, Grant Robertson has made a plea to businesses “to continue to pay their bills to one another. It is very important that businesses that are in a position to do so, continue to pay other businesses, particularly larger business paying smaller businesses. This ensures money continues to flow around the economy and ensure that businesses can remain solvent”. If you are struggling to prioritise your debts, our advice is to have a strategy in place. Make sure it’s clear how you will manage your debtors, you need to decide what is most important to your business in this unprecedented and difficult time.

Insolvency relief for business impacted by COVID-19

April 9, 2020
On 3 April 2020, Finance Minister Grant Roberston, and Consumer Affairs Minister Kris Faafoi, announced changes to legislation that will support businesses through the COVID-19 pandemic. For some businesses, the impact of COVID-19 will still lead to liquidation. However, with these changes, it is hoped that others may be able to weather the storm and still be able to continue to trade on the other side.

How new legislation will lift the quality of insolvency practitioners

October 9, 2019
Insolvency and restructuring are increasingly viewed as specialised services, with a need for maintaining a high level of ethics and standards. We believe the introduction of the Insolvency Practitioners Regulation Act 2019 will do just that by promoting integrity and honesty, ultimately raising the standards of insolvency practice. Read more about the key changes.

Spotlight on: Business Reviews and Restructuring

February 24, 2017
Now that the Christmas rush is over, you are probably starting to come back to reality and you may be looking to set some goals for the coming year. Now is a good time to assess whether your business structure is working for you. If you need to talk, please don’t hesitate to get in touch as we may be able to help. There may be a number of reasons you require a formal report on the success or otherwise of...

What Does A Liquidator Actually Do?

February 24, 2017
Insolvency is when an individual, partnership or company is unable to pay its debts as they fall due; its liabilities are greater than assets. Liquidation is one of the ways insolvent companies can be dealt with. Liquidators are appointed either by voluntary appointment or by the High Court. Once a liquidator has been appointed, the Company is formally “In Liquidation” and this will be noted on the Companies Register. This is a public register of all companies registered in New Zealand...

Trading On

February 24, 2017
There is a common misconception that the difference between Liquidation and Receivership is that a Receiver will ‘trade on’ to rehabilitate a business, whereas a Liquidator will stop the business from trading, make the staff redundant and sell the stock. However, this is not correct. The Liquidators have the option to allow the business to continue trading, if they believe that it is in the best interests of the company’s creditors. However, they will only trade on with a view to...

Focus on Retail

February 24, 2017
2016 was a challenging year, even for some of New Zealand’s larger retailers. We saw the Receivership and subsequent Liquidations of Dick Smith Electronics and the Valleygirl and Temt stores, the Liquidation of Nicholas Jermyn, and the Voluntary Administration and Receivership of Pumpkin Patch. In recent times, Nexia New Zealand’s Liquidators have also dealt with several retail outlets including a Womens’ Clothing Boutique and a Lotto Outlet and Gift Shop (the liquidation of this company was in no way related to...

Voidable Transactions

October 4, 2016
Voidable Transactions Company Z was incorporated in July 2008. The company was owned and operated by a sole Director/Shareholder who worked as a ‘handyman’. Following the Christchurch earthquakes, the company struggled to compete with other construction companies and work began to diminish. This caused the company to fall behind on payments it had owing and was eventually wound up by way of Shareholder resolution. Prior to appointment of liquidators, the Director of the company, with some assistance from family, identified certain...

Over Ambition

October 4, 2016
Over Ambition Company Y was incorporated in March 2011 with a sole Director/Shareholder. The company grew very quickly and in a very competitive market saw significant success. However, due to this success, the company took on more work than what the staff could realistically produce. At the same time the management of the company did not understand how to account for its sales and expenses. This poor management led to a lack of funds available, despite large deposits being paid by...
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