Insolvency and restructuring updates

Business Debt Hibernation – the lowdown
20 May 20

The 'Business Debt Hibernation' process is one of a number of new initiatives introduced to mitigate the business impact of COVID-19.   What is the purpose of BDH? The Business Debt Hibernation or BDH process provides an opportunity for businesses facing significant cash-flow problems due ...

Summary of corporate insolvency regimes and the new “business debt hibernation” regime
20 Apr 20

Given the challenging business conditions as a result of the Covid-19 pandemic, an unfortunate consequence may be that we see a number of businesses fail. In light of this we set out below an overview of the various corporate insolvency regimes. In addition, we also ...

COVID-19 and Directors’ Duties: Navigating the way forward for your company in times of financial stress
15 Apr 20

With the current COVID-19 lockdown and likely recession to follow, many companies' businesses will come under significant financial stress, with cash flow and the ability to pay creditors severely impacted. The Companies Act 1993 (Act) imposes certain duties on directors to protect creditors and it ...

COVID-19: Changes to the Companies Act 1993 and insolvency relief
6 Apr 20

The Government has announced that it will be introducing legislation to make changes to the Companies Act to help businesses facing insolvency due to COVID-19 to remain viable. We are broadly supportive of these changes which are a pragmatic response to the crisis and follow ...

For more information contact:

Richard Greenaway

richard.greenaway@al.nz