Aussie-style change proposes private insolvency practitioners

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.

Read more in the NBR

Insolvency and Arbitration_an article by Matthew Crawford, Bankside Chambers

During the RITANZ conference in May, one of the panels[1] 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.

Read the article here

Matthew Crawford Bio

Lessons from Lehman: the perils and “arrogance” of cross-border insolvency

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:

Lessons from Lehman – by Reweti Kohere, NBR

Update – Insolvency set off PPSA Hamersley v Forge

 

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:

http://www.chapmantripp.com/publications/update-integrity-of-set-off-rights-restored