Wellington Business Recovery and Insolvency Specialists
Directors need guidance to be sure that the steps they are taking today are the ones that will provide the Company the best chance to recover from the economic shock.
We can assist to provide practical solutions that will be tailored to you or your clients business.
Contact Iain or Jessica today to discuss the BDO Business Risk Assessment.
Businesses have various life cycles and stages, BDO Wellington offers Business Recovery and Insolvency Services for those times when perhaps it isn’t going to plan.
It is what happens next that is important – what can be salvaged? What is no longer viable? How does this impact the stakeholders?
At BDO Wellington we are experienced at making the tough decisions with professionalism and respect.
Where BDO Wellington Can Help
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More About Business Recovery and Insolvency Services
- Liquidations can either be solvent or insolvent. A liquidation is the winding up of a company’s operation and leads to its removal from the New Zealand Companies Register.
- The process can be started by the company’s shareholders (a voluntary liquidation) or following a court order on the application of a creditor of the company.
- In either situation, the liquidator’s role is to realise the assets of the company for the benefit of creditors. Legislation sets out the order in which creditors of the company are paid out in a liquidation. After all creditors are paid in full, any remaining funds are distributed to the company’s shareholders.
- Liquidators are given wide powers to investigate the affairs of the company.
Companies in Receivership
- Receivership is a process where a secured creditor (usually, but not always, a bank) appoints an independent third party to realise assets to repay the debt owed by a company to the secured creditor. The ability to appoint a receiver is usually appointed under the terms of a security agreement.
- A receiver is generally appointed by a creditor who has security over the whole or the majority of a company’s assets. A company can be in liquidation and in receivership at the same time.
Voluntary Administrations for Wellington Companies
- Voluntary administration is a relatively new insolvency procedure in New Zealand and is designed to be used by companies that have the possibility of returning to being profitable
- The process is initiated by a company’s board of directors who appoint an administrator. The administrator takes control of a company’s assets and provides an expert recommendation to the company’s creditors who elect the best course of action going forward in terms of the company’s future. This may be: appointing a liquidator; entering into an agreement with creditors to restructure the debt (known as a Deed of Company Arrangement); or returning the company to the control of its board of directors.
- This flexible, rehabilitation-focused option is designed to maximise the possibility of a company returning to profitability and often provides a better return to creditors than an immediate liquidation.
- Turnaround involves evaluating a business, identifying any underperforming aspects and finding solutions to transform the business and address any poor performance.
- Generally the sooner a company seeks advice, the more likely it is that an achievable solution to any poor performance can be implemented.
Investigative Accounting Reports
- An independent third party is often best placed to identify problems without being caught up in a business’s day to day operations.
- We work alongside you to provide practical information that is easy to understand and implement as well as providing expert recommendations for your business going forward.
Business Recovery and Insolvency Partners To Help You
Iain Shephard and Jessica Kellow head up the BDO Wellington team. Iain and Jessica have lived and breathed insolvency for the majority of their careers and have a wide range of experience across all industries. Iain has previously served on the board of RITANZ and was closely involved in the drafting of the Code of Conduct and the Insolvency Law Reform Bill.
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