Book Now: RITANZ Annual Conference 2021

19th Annual Corporate Restructuring, Insolvency, and Turnaround Conference 2021: Looking Ahead: Reset and Response to Change

Venue: 9th of June 2021 AGM and Workshop The Northern Club
10th and 11th of June 2021 Cordis Hotel, Symonds Street, Auckland

The definitive annual event tailored for restructuring professionals and their advisors

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Hospitality businesses predicted to be hardest hit in wave of insolvencies

The hospitality industry is expected to be the hardest hit by insolvencies over the coming year with a wave of insolvencies predicted over the next one to two years.

A survey of restructuring and insolvency experts has found 93 per cent expect insolvency appointments to rise over the next one to two years and 83 per cent expect a rise in the next 12 months.

Topping the list of industries where they expect to see a rise was hospitality with 90 per cent of those surveyed predicting a rise in that sector over the next year.

That was followed closed by tourism (88 per cent), retail (82 per cent) and accommodation (83 per cent).

John Fisk, chairman of the Restructuring Insolvency and Turnaround Association, said the impact of Covid hadn’t started to come through into liquidations at the moment.

Read the full article

Covid-19: Business failure numbers still below pre-pandemic levels

RITANZ Chair John Fisk was recently interviewed by RNZ on the number of business failures in NZ as shown below.

Fears that the pandemic would prompt a wave of business failures have not come to fruition, yet.

The Restructuring Insolvency & Turnaround Association (RITANZ) expected the end of various government support measures, such as the wage subsidy scheme, would trigger a slew of insolvencies towards the end of 2020, which could continue for a number of years.

That was based on what happened during the 2008 global financial crisis.

https://www.rnz.co.nz/news/business/440038/covid-19-business-failure-numbers-still-below-pre-pandemic-levels

Court of Appeal confirms liability of Mainzeal directors

This article is reposted here courtesy of MinterEllisonRuddWatts.

The Court of Appeal has delivered its eagerly anticipated judgment in proceedings brought by the liquidators of Mainzeal Property and Construction Ltd against its former directors, including Richard Yan and Dame Jenny Shipley. In those proceedings, the liquidators sought compensation for breach of certain statutory duties of directors engaged on a company’s insolvency: sections 135 (reckless trading) and 136 (incurring obligations) of the Companies Act 1993.

Although differing from the High Court’s judgment in several respects, the Court of Appeal concluded “[t]he liquidators were the successful party in relation to liability, and have established that they are entitled to an award of compensation in respect of the directors’ breaches”.

The Court agreed with the High Court that the directors had traded recklessly (in breach of s 135). It disagreed with the High Court’s approach to compensation arising from their doing so, finding that no loss was attributable to this breach of duty. However, unlike the High Court, the Court of Appeal found that the directors had also caused Mainzeal to commit to obligations without reasonable grounds for thinking that it would be able to fulfil those obligations (in breach of s 136). It considered there was loss attributable to these actions and referred the case back to the High Court to determine the amount of compensation to award to reflect this.

Read the full article here:

https://www.minterellison.co.nz/our-view/court-of-appeal-confirms-liability-of-mainzeal-directors

RITANZ Save the Date

19th Annual Corporate Restructuring, Insolvency, and Turnaround Conference 2021: Looking Ahead: Reset and Response to Change

Venue: 9th of June 2021 AGM and Workshop The Northern Club
10th and 11th of June 2021 Cordis Hotel, Symonds Street, Auckland

Virtual Conference will be held in the event of lockdown

The definitive annual event tailored for restructuring professionals and their advisors

Read more

Mental Health in the Workplace

RITANZ members only. If you are a RITANZ member and do not have your log in details please send an email request to: admin@ritanz.org.nz If you are a non RITANZ member and would like to pay to watch this webinar, please send an email to the above email address and we will let you know if it is available.

Life Membership Nominations are now open

To be eligible for Life Membership a person must have shown outstanding service to RITANZ or to the insolvency profession and meet the general criteria for membership to RITANZ.

To assist members in considering nominations for this role, the Board has considered factors which it will take into account when determining whether a nominee has shown outstanding service to RITANZ or to the insolvency profession.

Read more “Life Membership Nominations are now open”

Insolvency numbers plummet but there are still warning signs, expert cautions

NZ Herald Money editor, Tamsyn Parker, recently interviewed RITANZ Chairperson John Fisk to get his perspective on the outlook for 2021.

Court applications to wind up companies plummeted in 2020, bucking expectations of widespread business failures. But an insolvency expert says there are still warning signs that some companies are in for a tough time this year.

Wind-up applications dropped nearly 32 per cent from 707 to 481 between 2019 and 2020, figures from the Restructuring Insolvency and Turnaround Association New Zealand show.

To read the full article:

https://www.nzherald.co.nz/business/insolvency-numbers-plummet-but-there-are-still-warning-signs-expert-cautions/4GL2QNNQAXUNBTXAWJCKULTUII/