News & thinking

Insolvency and Corporate Recovery:

Is 2024 going to be “the insolvency year”?

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Most professionals in the insolvency world would agree that the effects of Covid have been slow to make an impact in our area. Indeed, during the "Covid years" of mid-2020 to -late 2022, New Zealand experienced very low insolvency numbers.…

Anthony Harper wins Insolvency and Restructuring Deal of the Year

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Anthony Harper was named winner of Insolvency and Restructuring Deal of the Year at the 2023 NZ Law Awards, for the liquidation of CBL Insurance Limited. The firm acted for liquidators, McGrathNicol, in a claim against the directors and advisors…

No ability to set off claims in solvent liquidations

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A warning for companies entering solvent liquidation: you may not have a right to set-off unliquidated claims against debts you owe to creditors. That was the finding in a recent High Court decision where the liquidators of HY Tourism Ltd…

Mainzeal – Supreme Court recognises two “new” causes of action for creditors

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The Supreme Court recently released its decision in relation to the long-running directors' duty case, Yan v Mainzeal Property and Construction Limited (in liquidation) [2023] NZSC 113 (Mainzeal). In the wake of the release, there have been…
Single house in a row red against the other white houses.

The ability to enforce following lease and mortgage defaults

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On 15 April, the Government announced further temporary changes to legislation giving some relief to commercial tenants and mortgagors. Particularly, changes to current legislation were introduced extending the timeframes that tenants and…

Business Debt Hibernation

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As part of the changes to assist businesses ride out the COVID-19 storm, parliament has proposed a business debt hibernation scheme to supplement the existing insolvency mechanisms under the Companies Act 1993. Business Debt Hibernation The…
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Safe harbour for directors – Relief for businesses or storm brewing?

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Parliament is introducing legislation to amend the Companies Act to assist companies facing solvency issues as a result of COVID-19. The hope is that this will assist companies to trade through and keep employees on board during this time…
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Mitigating insolvency risks during COVID-19 lockdown

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The COVID-19 pandemic will have a significant financial impact on all businesses across New Zealand, particularly as a result of the Government-directed lockdown. The nationwide financial impact may give rise to insolvency risks for some businesses. Now…

Supreme Court clarifies the law under s292 of the Companies Act

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The Supreme Court has now issued a judgment in Robt. Jones Holdings Limited v McCullagh and Lawrence in [2019] NZSC 86.  The decision clarifies the test under section 292, giving liquidators and advisors certainty around what must be proven…

Managing the risk of insolvency on a construction project

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With the new Construction Contracts Act retentions regime in place, and rising construction costs, more and more businesses in the construction industry are facing solvency issues.  Contractors are finding their cashflow is tightening and margins…