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...

Shareholder Relationship Breakdown & Disputed Debtors

October 4, 2016
Shareholder Relationship Breakdown & Disputed Debtors Company X was incorporated in August 2013 and began trading in October 2013. It operated in the construction industry, specialising in drywall and jib installation and plastering. The company has three Directors and Shareholders – two with 30% Shareholdings and the third holding the remaining 40%. Each of the Directors/Shareholders played a different role in the operation of the business. One Shareholder dealt with the accounts and business management, one Shareholder carried out the construction...

Spotlight On: The PPSR

October 4, 2016
Spotlight On: The PPSR When a company is placed into liquidation, the first thing creditors often say to us is “I just want my goods back”. However, through our work as Liquidators, we often see trade creditors who have neglected to protect themselves adequately under the provisions of the Personal Property Securities Act 1999 and we are unable to recognise their interests. The Act caters for all property except land and buildings, these are still only able to be registered with...
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