Waterstone Insolvency

17/09/2026

GDP Slowdown: NZ’s Economic Margin for Error is Shrinking

Stats NZ just confirmed a sharp economic deceleration, with New Zealand's GDP growing by only 0.2% in the June 2026 quarter.

Down from 0.8% earlier in the year, this flatlining growth is being heavily squeezed by persistent energy and fuel price pressures.

When macroeconomic margins get this thin, corporate stress accelerates. A 0.2% growth climate means:

Liquidity Crushes: Customers delay payments to protect their own cash, stalling your supply chain finance.

Over-Leverage Exposures: Debts structured during higher-growth periods suddenly become unsustainable.

Forced Restructuring: Operations that were marginally viable in Q1 are facing severe distress now.

If your business or your clients are feeling the crunch of a stagnant economy, ignoring the early warning signs is the biggest risk. Proactive restructuring protects value; waiting for a crisis destroys it.

At Waterstone Insolvency, we specialise in helping Kiwi businesses navigate financial distress, turnaround strategies, and formal restructuring options before it’s too late.

Speak with a turnaround specialist at Waterstone

02/09/2026

Coffee was hot. The takes were hotter.

We had a packed house at our latest Waterstone and Gravity Credit Management Breakfast Series event down in the Viaduct! A huge thank you to everyone who braved the morning to join us and fill the room.

Our host for the morning was none other than Paul Henry who, in true Paul fashion, kept his message short, incredibly direct, and gave us plenty to talk about. Between his recent leap into politics with the ACT NZ Party and his trademark no-nonsense style, it’s safe to say nobody was falling asleep into their muffins.

Great insights, excellent company, and just the right amount of morning provocation.

Check out some of the highlights from the morning below!

24/08/2026

The clock is ticking for New Zealand businesses carrying historic tax debt. Inland Revenue’s (IRD) temporary tax pooling debt scheme is set to close on 1 October 2026. With Kiwi businesses owing an estimated $1.2 billion for the 2023 and 2024 financial years, this pilot program represents a massive, yet underutilised, opportunity to clean up the books.

If your business is behind on income tax, here is what you need to know to take advantage of this scheme before the deadline.

What is the Tax Pooling Debt Scheme?

Launched in April, this IRD-backed initiative allows cash-strapped businesses to retroactively use tax pooling to settle historic income tax debt specifically for the 2023 and 2024 financial years.

Essentially, you are purchasing overpaid tax from another company through an approved tax pooling intermediary. Once purchased, this tax is transferred into your IRD account. Because the transaction acts as a backdated tax credit, it appears to the IRD as though your tax was paid on time.

Read the full article by Waterstone marketing lead, Benno Stander

23/08/2026

What happens if a company pays off an old debt but goes into liquidation shortly after, even though they assured you everything was fine and you had no idea they were in trouble?

Often such payments are a target for liquidators under the voidable transaction scheme in sections 292 – 296 of the Companies Act 1993, and can be clawed back, despite you genuinely being owed the money.

If this happens, there are two main defences to a voidable transaction claim:

The running account defence (see What is a running account’s relevance to voidable transactions?)
The section 296(3) defence
This article will specifically address the section 296(3) defence, and the three limbs you must make out in order to succeed in avoiding having to repay the liquidator.

Read the full article by Waterstone in-house counsel, Brooke McLeish

What happens if a company pays off an old debt but goes into liquidation shortly after, even though they assured you everything was fine and you had no idea

20/08/2026

New Zealand corporate insolvencies remained stubbornly high in July 2026, with the New Zealand Companies Office recording 299 total corporate appointments, up from 272 in July 2025 and 221 in July 2024. While this total sits just below the 11-year cyclical highs seen earlier in the year, business failures continue a sharp multi-year upward trajectory. Key Figures for July 2026

Corporate Breakdown: The month recorded 262 liquidations, 27 receiverships, and 8 voluntary administrations.

The Registry Churn: A total of 5,517 new companies were incorporated, while 3,299 companies were completely removed from the register. The total pool of active companies reached 759,201.

Creditor Enforcement: Creditors filed 101 formal winding-up applications during the month (up from 97 in July 2025). Year-to-date applications now sit at 785, well ahead of the 691 filed by this point last year.

The IRD Drag: The Inland Revenue Department remains the primary catalyst for distress, driving 70 of the 101 monthly winding-up applications. Year-to-date, the IRD has advertised 519 applications, compared to 456 at the same point in 2025.

Historic Volumes: The broader run-rate places 2026 on track to exceed 3,000 annual liquidations, tracking even higher than the 15-year high of 2,867 liquidations logged across 2025.

20/08/2026

A recent case, Webb v Booth [2026] has clarified what is considered an accounts receivable and therefore what must be paid to preferential creditors (staff members and Inland Revenue) instead of the bank.

Why this case is important?

How recoveries are allocated in liquidation is an issue which can be complicated. Broadly speaking, there are two important estates when it comes to distributing assets:

Secured creditors: These include specific security interests and General Security interests

Preferential Creditors: Mainly former employee entitlements and Inland Revenue (for GST and PAYE)

In accordance with the PPSA and Schedule 7 of the Companies Act, ‘accounts receivable’ and ‘inventory’ which are not subject to a Purchase Money Security Interest will be paid to secured creditors.

Read the full article by Waterstone senior analyst, Michael Turner

A recent case, Webb v Booth has clarified what is considered an accounts receivable and therefore what must be paid to preferential creditors (staff members

13/08/2026

The upcoming address protection law allows New Zealand company directors to hide their residential addresses from public view on the Companies Register starting 18 November 2026. Under the Companies (Address Information) Amendment Act 2025 enacted by the Ministry of Business, Innovation and Employment (MBIE), directors will have the right to substitute their home address with an “alternative address” to mitigate privacy and safety risks.

Here is what these structural changes mean for you in practical terms.

Starting 18 November 2026, New Zealand company directors can officially remove their residential addresses from the public Companies Register to protect their privacy and personal safety.

19/07/2026

The legacy of pandemic-era economics is finally catching up with the New Zealand commercial landscape. For anyone looking closely at the health of the business sector, the true story isn’t found in short-term market sentiment, but in the structural reality of the New Zealand Companies Register.

Between 2019 and 2021, commercial gravity was essentially suspended. Massive government stimulus packages, combined with a temporary pause on standard debt collection practices, kept hundreds of unviable businesses artificially afloat. During this period, company removals plummeted to decade-lows, creating an unprecedented “net-growth bubble” where nearly two companies were incorporated for every single one that closed.

Now, we are watching an aggressive, multi-year market self-correction.

Read the full article by Waterstone marketing lead, Benno Stander

The legacy of pandemic-era economics is finally catching up with the New Zealand commercial landscape. For anyone looking closely at the health of the

16/07/2026

It is now common practice for debt collection companies to purchase debts from parties who may lack the resources or capacity to pursue recovery themselves. In such circumstances, a notice of assignment becomes relevant.

Subpart 5 of the Property Law Act 2007 (the 2007 PLA) governs the assignment of choses in action. Under section 48 of the 2007 PLA, a “thing in action” includes: (a) a right to receive payment of a debt; and (b) part of a thing in action. It is important to note that Subpart 5 applies only to assignments of things in action made on or after 1 January 2008. Assignments made before that date continue to be governed by the Property Law Act 1952 (the 1952 Act).

Read the full article by Waterstone junior in-house counsel, Linda Ban

It is now common practice for debt collection companies to purchase debts from parties who may lack the resources or capacity to pursue recovery themselves.

15/07/2026

A company can look solvent on paper and still be insolvent in practice. The point is often missed. Directors, shareholders and advisers look first to the balance sheet. The company owns a plant. It has debtors. It has work in progress. It has a pipeline.

But in New Zealand insolvency law, the immediate question is not whether the company has value. It is whether the company can pay its debts as they fall due. The solvency test in section 4 of the Companies Act 1993 has two limbs: the company must be able to pay its debts as they become due in the normal course of business, and its assets must exceed its liabilities. A company that fails the first limb is in difficulty no matter how the second looks.

Read the full article by Waterstone Wellington manager, Bede Henderson

A company can look solvent on paper and still be insolvent in practice.