We offer the following services

  • Liquidation
  • Receivership
  • Creditors compromise
  • Trustee service for insolvent individuals
  • Business recovery
  • Business valuations
  • Financial due diligence review



We can assist with the process to put a company into liquidation voluntarily when directors and shareholders determine the company is insolvent.  We also accept Court appointed liquidations following a creditors petition to the Court to liquidate a debtor company.

Most voluntary liquidations commence upon the appointment of a liquidator or liquidators pursuant to a shareholders resolution.  The resolution must be signed by shareholders holding 75% of the shares in a company.  We can discuss issues arising from the liquidation process before any decision is made to liquidate.  The process for a Court appointed liquidation involves more steps that a voluntary liquidation.

The Court appointed process starts with a statutory demand by a creditor on a debtor company for payment of an outstanding debt.  If the statutory demand does not result in payment within the time frame the creditor will serve a formal notice that has petitioned the Court to liquidate the debtor company. Once the formal notice is made a creditor has 10 days to make payment or make a voluntary appointment. After this period the directors and shareholders effectively lose the ability to appoint a liquidator.   If the Court is satisfied the debtor company is insolvent liquidators will be appointed.

Upon liquidation the liquidator will move to take control of all company assets and realise them generally for the benefit of preferential and unsecured creditors.  A liquidators primary duty is to secured and unsecured creditors.  Such assets may include overdrawn current shareholders current accounts.  Liquidators will usually move to terminate trading as soon as possible although it is possible for a company in liquidation to trade for a period.


We act as receivers for small to medium sized enterprises.

A receivership occurs when a secured creditor of a debtor company appoints a receiver to realise the debtor company’s assets and / or trade the company in order to repay the debt.  The authority to appoint a receiver is contained in a security agreement between creditor and debtor.  Once the debt is repaid the receiver’s job is completed and receivership ends and the company passes back to shareholders or a liquidator.  A company can be in receivership and liquidation at the same time.  Because the debtor company is insolvent when the receiver is appointed, in practice there is often very little in the way of assets upon a receivership’s termination.

The receiver’s primary duty is to the secured creditor however there are secondary duties to preferential and unsecured creditors.

Creditors Compromise

A compromise  is a formal agreement governed by the Companies Act 1993 between an insolvent company and its creditors, and for the right companies an important tool in a business recovery.   We can provide advice to creditors contemplating entering into a compromise or to debtor companies considering this option.

Generally a compromise will provide for part or delayed payments of debt and a freeze on creditor recovery action.  But creditors will need to be persuaded they will be better off than say in the event of a receivership or liquidation.  A continuation in the business relationship will be an important factor in most creditors calculations so it is important for directors to demonstrate the debtor company can have a viable future.

In order for a compromise to be implemented a meeting of creditors must be held and at that meeting at least a majority in number representing 75% in value of debt in each class of creditors must vote for the compromise.

Trustee Service for Insolvent Individuals

Also known as Part 5 Subpart 2 Proposals, this procedure is available to insolvent individuals looking to avoid bankruptcy.  Sometimes those individuals will have attracted financial obligations by signing personal guarantees for a company that subsequently went into liquidation.  We can offer advice regarding the proposal procedure and trustee services in respect of a proposal.

The proposal is a formal agreement under the Insolvency Act 2006 which provides for part or delayed payments of debt and a freeze on creditor recovery action.  A proposal must be put to and approved at least 50% in number and 75% in value of creditors at a creditors meeting and then approved by the High Court.

Business Recovery

When a business is in financial trouble it may be possible to effect a turnaround – but this will depend on understanding the issues, identifying recovery options, selecting the right options and implementing them quickly.  In most situations the assistance of an outside specialist is key because while managers are usually aware the business is experiencing financial trouble they may not have the objectivity, and expertise to effect a turnaround.  It also helps to have an independent specialist when communicating with stakeholders.

In determining options, an understanding of why the business is stressed and the cash flow impact is key. Various options for recovery range from doing nothing to some or all of the below;

  1. Informal or formal creditor management – creditors compromise is discussed above,
  2. Negotiation with secured creditors,
  3. Capital injection,
  4. Cost reduction programme,
  5. Sales of selected  assets or business lines,
  6. Sale of the business.

Sometimes it is too late to save the business and formal insolvency may eventuate.  The business case(s) for recovery options should be benchmarked against formal insolvency.

Business Valuations

We undertake business valuations for commercial or relationship property purposes – in fact our Rotorua office is situated alongside family law barristers at Robinson Chambers.   Our market is small to medium entities and our personalised level of service and pricing reflects that.  The first step in any valuation is to gain an understanding of the external environment and internal business factors that when put together comprise the business or entity value.  Once the factual situation is understood a range of valuation methodologies may be used to determine a business value.

Financial Due Diligence

The due diligence process is undertaken when a potential purchaser wants to establish the credibility of information for a business transaction or purchase.  Too many business purchases are completed with this step not included or given a cursory examination, leading to losses for the purchaser in terms of incorrect price and / or time and financial cost dealing with unanticipated problems.  Due diligence can involve looking at specific areas of the profit and loss or balance sheet through to a full review of factors such as management competence, operations and legal.  Our focus is on financial due diligence and we can co-ordinate other aspects of due diligence.