According to media reports, the failure of a small IT company may jeopardise Telecom's XT network.
Justice Venning approved a scheme of arrangement under Part 15 of the Companies Act 1993 effecting the managed withdrawal by ACS (NZ) Limited from its insurance business in New Zealand. The Court noted that the Scheme provided the best opportunity for an ordered and efficient run-off and management of claims with minimal disruption in relation to the company's processes. In liquidation, the liquidators would need time to familiarise themselves with the operation of the company and would proceed on a cautious basis, which would likely result in a material delay in meeting claims.
The recent case ofBay Flight 2012 Limited v Flight Care Limited is a reminder that holders of common law liens must take care to ensure that their lien is not extinguished by giving up possession.
In a decision concerning the expiry of a subordination agreement, the High Court has indicated that the priority of competing security interests is to be determined at the time the competing interests come in to conflict.
“...we consider that the section means what it says, and that there is not much point in trying to paraphrase it.” (Supreme Court in Thompson v CIR)
This guide introduces you to New Zealand's business and trading environment, with particular focus on legal and regulatory matters.
The Law Commission is looking into whether the regulation of trading trusts gives enough protection to creditors and beneficiaries in circumstances of insolvency.
Submissions are due on the issues paper by 2 March 2012.
What is a trading trust?
Making a payment to a creditor (in this case, the IRD) will in and of itself give that creditor priority over competing creditors. A recent Court of Appeal judgment to that effect, under section 95 of the Personal Property Securities Act (PPSA), carries serious implications for receivers.1
In Aotearoa Kiwifruit Export Limited v ANZ National Bank Limited, the High Court was required to examine the difficulties that arise when a director of a company ordered into liquidation disputes that order.