New Zealand Business Failures: Worst Yet to Come, Insolvency Expert Predicts Bleak 2021

Next year is going to be a "watershed year" for business failures an insolvency expert is predicting, unless companies can come up with a plan now to get out of debt and survive, the New Zealand Herald reported. John Fisk, national leader of restructuring for PwC and chair of the Restructuring Insolvency and Turnaround Association New Zealand, said that insolvency applications had come down significantly under lockdown but massive amounts of government subsidies meant many businesses weren't addressing the underlying issues related to debt. "What concerns me is that we have kicked the can down the road," Fisk said. Applications for winding up businesses/liquidations rose to 93 in February before falling down to just 17 in April. They had since bounced back to 54 last month. Fisk said apart from the wage subsidy most of the other allowances being made for businesses were debt related. Read more.