News & thinking

Insolvency and Corporate Recovery:
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 solvency issues 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…