KPMG NZ to separate Corporate Recovery practice
15 June 2004
KPMG New Zealand to separate Corporate Recovery practice
KPMG today announced that its Corporate Recovery practice will separate from KPMG and form an independent Corporate Recovery firm which will operate as McGrath Nicol + Partners, effective 1 August 2004.
In New Zealand, the change will involve two partners and 10 staff located in Auckland. The New Zealand group will be closely associated with the newly created insolvency firm McGrath Nicol + Partners in Australia, which comprises 14 partners and approximately 140 staff. The new firm in New Zealand will be headed by Kerryn Downey and William Black.
The reasons for the separation are client driven, as KPMG in New Zealand audits three of the major banks which have independence policies preventing KPMG from accepting any Corporate Recovery appointments from these banks and from banking syndicates where they have a significant interest.
The decision to separate the Corporate Recovery practice in New Zealand follows a similar announcement from KPMG Australia. According to KPMG New Zealand Chairman, Alan Isaac, the separation responds to the needs of the banks and other clients and will ensure that the partners and staff in this area can continue to serve the market and maintain the competitiveness and vibrancy of the business in the longer term.
KPMG in New Zealand has implemented plans to transition current Corporate Recovery assignments including the high profile recent assignments of HIH in New Zealand, Carich Training Centres, and various advisory engagements.
McGrath Nicol + Partners in New Zealand will occupy separate space in the KPMG Centre at 18 Viaduct Harbour Avenue, Auckland, but will have totally independent business operations. Mr Isaac said the separation reflects the realistic view taken by the firm to adapt to changed market conditions. “ It will ensure our banking and other clients who have adopted similar independence policies are best served and at the same time ensure that the pre-eminent Corporate Recovery practice remains intact.”
Kerryn Downey, Managing Partner of the new firm in New Zealand said “KPMG in New Zealand has a long and proud tradition of providing corporate recovery services and is one of the top ranked firms in the local market. Operating as an independent firm, associated with McGrath Nicol + Partners in Australia will position the New Zealand firm for growth while servicing the needs of our clients.”