Waterstone Insolvency

21/10/2026

The Law Commission is currently conducting a comprehensive review of the duties and potential liabilities of company directors in New Zealand. Named “Haemata Haepapa,” which translates from te reo Māori to “responsible leadership,” the project marks the first time these core corporate duties have been thoroughly examined since they were enacted over three decades ago.

The Law Commission is currently conducting a comprehensive review of the duties and potential liabilities of company directors in New Zealand. Named "Haemata

20/10/2026

A tenant goes into liquidation. A week or two later the landlord gets a letter from the liquidator saying the lease has been disclaimed. The landlord wants to know three things: can the liquidator do that, will anyone still pay the rent, and does the director’s personal guarantee still stand?

19/10/2026

In Reynolds v You & Me Limited [2024] NZHC 3704, the liquidator of Love of Learning Limited (in liquidation) (LOL) challenged a journal entry by which LOL’s debt to You & Me Limited (YML) was partially reduced. The three companies involved—LOL, YML, and Children Teachers Limited (CTU)—were under common control. Mr Collin and Ms Chan were directors of all three companies and, either directly or through entities they owned, were shareholders in all three companies.

In Reynolds v You & Me Limited [2024] NZHC 3704, the liquidator of Love of Learning Limited (in liquidation) (LOL) challenged a journal entry by which LOL’s debt to You & Me Limited (YML) was partially reduced. The three companies involved—LOL, YML, and Children Teachers Limited (CTU)—were und...

18/10/2026

In the modern business landscape, directors face an array of risks while operating their companies: personal liability for company debts, breaches of directors’ duties, tax liability, and reputational damage, to name a few. But despite the record number of company failures, it seems that for many creditors of failed businesses, the majority of directors of failed companies seem to escape any real punishment or corrective enforcement by the relevant authorities.

In the modern business landscape, directors face an array of risks while operating their companies: personal liability for company debts, breaches of

13/10/2026

A full room and some fiery political debate to wrap up our series!

This morning, Waterstone & Gravity Credit Management hosted our fourth and final breakfast series event for 2026, at the stunning QT Rooftop in the Viaduct. As has been the trend for this entire series, the room was packed out with a fantastic crowd eager for sharp insights ahead of the upcoming election.

We were privileged to have ACT Party Leader David Seymour take the stage as our final guest speaker. He pulled no punches, delivering a candid and thought-provoking address on New Zealand's current fiscal track and what he described as the "dumpster fire of a policy debate" unfolding across the country right now. From government efficiency baselines to proposed supermarket policies and the future of superannuation, it was a session packed with crucial takeaways for the business community.

A massive thank you to David, and to everyone who joined us this morning and throughout the series to make these events such a massive success!

👉 For a deeper dive into the key points from David Seymour's address, check out the full insight on NZ Herald. It must have slipped their minds to mention who hosted them so graciously this morning, but we'll let that slide this time round:

https://www.nzherald.co.nz/nz/politics/election-2026-acts-david-seymour-says-world-watching-new-zealands-dumpster-fire-policy-debate/D5GC3OJRBNCWJF6VMSCBNOOIZM/

30/09/2026

What do liquidators actually do?

Many assume that a liquidator’s job is to sell company assets and distribute available fundsto creditors. However, liquidation can involve a much broader investigation.

Many assume that a liquidator’s job is to sell company assets and distribute available funds to creditors. However, liquidation can involve a much broader

28/09/2026

Use it or lose it: Secured creditors and section 305

Holding security is not a reason to sit on the sidelines of a liquidation. A creditor that does notmake a choice, or makes it late, can lose its security altogether.

Holding security is not a reason to sit on the sidelines of a liquidation. Section 305 of the Companies Act 1993 requires a secured creditor to make a choice,

27/09/2026

Transaction for inadequate consideration: Anoverlooked solution?

Transaction undervalue and transaction for inadequate / excessive consideration arepowerful remedies, but often overlooked.

The ability for liquidators to recover and investigate the affairs of liquidated companies is surprisingly vast; liquidator specific recoveries include:

25/09/2026

An analysis of the New Zealand corporate landscape reveals an aggressive period ofrestructuring in August 2026. While broad consumer credit defaults showed signs ofstabilising, actual corporate liquidations and formal business failures remained heavilyelevated due to a significant lag effect from years of tight monetary conditions.

Key Figures for August 2026

Corporate Liquidations:
230 companies were officially placed into liquidation during themonth.

Total Insolvency Events:
In total, 244 corporate insolvency events were logged, whichincluded 13 receiverships and 1 voluntary administration.

Net Business Closures:
The corporate register saw a major net reduction, with 10,515companies removed compared to just 5,047 new incorporations.

Sector Vulnerability:
The construction sector accounted for the single largest slice ofdistress at 28% of total liquidations, while the fastest accelerating distress shifted to the retailand hospitality sectors.

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