Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

New insolvency law should save businesses and jobs

For Immediate Release
 
October 31, 2007

New insolvency law should save businesses and jobs

The biggest change to New Zealand insolvency law in at least 20 years comes into force tomorrow (November 1), giving creditors wider-reaching powers which should give them better returns while also saving businesses and jobs.
 
Peter Hattaway, a leading New Zealand credit expert, says that New Zealanders who have been accustomed to seeing news of companies going into receivership or liquidation have a new and perhaps more positive term to get used to - "voluntary administration".  
 
“In Australia, "VAs", as they are known, are the most common form of company insolvency.  Research has shown that the process can lead to creditors recovering more money than they would have in a liquidation.  
 
“New Zealand has largely copied Australia's law, but experts are hopeful that the law will work even better here as the New Zealand legislation tries to correct some of the problems that have occurred in the Australian regime,” he said.
 
Starting tomorrow, the Companies Act allows directors to put their failing companies into the hands of an independent administrator who has a month's grace period to try to come up with a rescue plan.  
 
“After a month, creditors vote on whether to accept or reject the plan at a ‘watershed meeting’, which decides the company's future.  They can vote to put the company into liquidation, or to accept the plan.  
 
“The plan usually involves creditors forgiving some of the debt and being paid the balance over time,” he said.
 
Mr Hattaway said that these changes to the insolvency law will affect a lot of businesses and a lot of people's lives, so it's important that people understand them.
 
“There are seminars being held on this topic around New Zealand over the next week and they are well supported, which is probably indicative of the affects that this new legislation will have,” he said.

ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The Elusive Charms Of Christopher Luxon


Well, the first 36 hours of viewing the Christopher Luxon selfie were always going to be the best, before the repetitions set in. We get it, already. He’s an extroverted/big ego/high achieving/God fearing/country music lovin’/family man who is not at all averse to mansplaining to little ladies like RNZ’s Kathryn Ryan what “technical” words like “productivity” actually mean. But wait, there’s more. National is back! Mind you, that’s not the Bad National of recent experience, but the Good National of days gone by... More>>




 
 



Cancer Society: Hopes Final Pharmac Report Is Stronger

Today the delayed Interim Report was released by the Pharmac Review Panel. The performance of Pharmac and access to cancer drugs is a major concern for the Cancer Society... More>>


Defence: New Zealand Response To Assist Peace And Stability In Solomon Islands
The New Zealand government has announced that it will deploy Defence Force and Police personnel to Honiara to help restore peace and stability. “New Zealand is committed to its responsibilities and playing its part in upholding regional security,” Prime Minister Jacinda Ardern said.... More>>


Government: Delivers Reactivation Package As Aucklanders Reconnect For Summer
A new support package will help revive economic, social and cultural activities in our largest city over summer, and ensure those in hardship also get relief. The Social Development and Employment Minister Carmel Sepuloni and the Economic and Regional Development Minister Stuart Nash... More>>


National Party: Bridges Appointed Finance & Infrastructure Spokesperson

Hon Simon Bridges is the National Party’s new Finance and Infrastructure spokesperson, National Leader Christopher Luxon announced today. “Simon has prodigious skills, incredible talent and the intellectual heft needed to excel as National’s Finance spokesperson,” Mr Luxon says.... More>>

Waitangi National Trust: Waitangi Week
The Waitangi National Trust has decided there will be no in-person events at Waitangi Treaty Grounds during Waitangi Week 2022. Under the COVID-19 Protection Framework it would be practically impossible to safely proceed with the usual events of Waitangi commemorations... More>>


Freedom Camping: Making Sure People Are Up To Play With Changes
People interested in finding out how the proposed improvements to freedom camping might affect them are being invited to an information-sharing webinar... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels