Maria Slade, NBR interviews RITANZ chair, John Fisk.
2021 will be the watershed year for firms going bust, liquidators say.
New Zealand has “kicked the can down the road” and can expect a slew of company collapses next year, a leading insolvency practitioner says.
Measures such as the wage subsidy have put the brakes on business failures but there will be a lag, says PwC partner John Fisk, who is also chair of the insolvency industry body RITANZ (Restructuring Insolvency and Turnaround Association New Zealand).
“I think 2021 will be the watershed year when a lot of this starts to become a real issue,” he said.
The Restructuring Insolvency and Turnaround Association of New Zealand (RITANZ) is pleased to announce a Commencement Order has been made by Parliament today to bring into effect the Insolvency Practitioners Regulation Act 2019 on 1 September 2020, despite an initial delay to the start date due to the impact of COVID-19.
Under the new law, the insolvency profession will be subject to mandatory licensing, a first for New Zealand. Practitioners must be of good character, a fit and proper person and have the skills and experience to complete the technical and challenging work of restructuring and insolvency professionals.