Political efforts to change insolvency law are taking inspiration from Australia.
Labour MP Raymond Huo is consulting with the private sector about a bill that would allow private sector insolvency practitioners to take the place of government-employed official assignees, inviting the private sector into a role that has previously been monopolised by the government.
During the RITANZ conference in May, one of the panels explored the ways in which insolvency disputes might voluntarily be determined by an alternative dispute resolution process following an insolvency event. A related and important issue is the extent to which parties may be forced to have insolvency related disputes determined by, for example, arbitration.
The issue can arise because a relevant contract or the company’s constitutional documents may contain an arbitration agreement. These arrangements can impact upon both the right to apply for a liquidation order as well as disputes over provable debts. In at least one case discussed below, even administrative actions taken by the liquidator can be subject to compulsory arbitral oversight. The topic has attracted more judicial interest abroad than in New Zealand, for now.
The new rules for insolvency practitioners which passed earlier this month will “level the playing field” in the sector and help screen for fee-chasing cowboys, according to the Restructuring Insolvency and Turnaround Association of New Zealand (RITANZ).
The Restructuring Insolvency and Turnaround Association of New Zealand (RITANZ) has welcomed news that the Insolvency Practitioners Bill has passed into law on Wednesday, almost a decade after it was first introduced into Parliament.
Members who attended the RITANZ Annual Conference in Auckland this year will have enjoyed a fascinating session on the Lehman collapse and a retrospective look at the causes of this and whether anything has positively changed in our approach to cross border insolvency.
The NBR attended this session and have produced the following article flowing from that discussion:
Members who attended the RITANZ Annual Conference in Auckland this year may recall Steve Flynn’s presentation strongly questioning the outcome in the Western Australian case of Hamersley v Forge, which involved the important issue of the inter-relationship between insolvency set off and PPSA. Steve’s subsequent article can be found at (2018) 29 JBFLP 175.
The Western Australian Court of Appeal has now overturned the lower court decision – a succinct case note on the appeal can be found at: