Waterstone Insolvency

19/05/2026

Insolvency practitioners, like professionals in accounting, law, and finance, must carefully manage their own personal liability when accepting formal appointments.

In New Zealand, there are three main forms of insolvency appointments such as liquidation, receivership, and voluntary administration. Each of them carries different levels of personal exposure for the appointed practitioner.

Importantly, insolvency practitioners are not personally liable for debts incurred by the company before their appointment. Personal liability only arises from the point the appointment is accepted.

Read the full article by Waterstone senior analyst, Stan Denisenkov

Insolvency practitioners, like professionals in accounting, law, and finance, must carefully manage their own personal liability when accepting formal

18/05/2026

One of the common defences raised to a claim made by a liquidator that a transaction is voidable is that the transaction forms part of a continuing business relationship, also known as a running account.

The Court of Appeal case Timberworld Ltd v Levin [2015] NZCA 111 is the leading case in New Zealand on running accounts, and sets out the key features of a running account at paragraph [34].

Essentially, what this means is if a supplier receives payments from an insolvent company in the weeks or months prior to its liquidation, these would usually be voidable. However, if the payments received by the supplier are then followed by the supplier continuing to supply goods or services to the insolvent company, they are not individually voidable.

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

One of the common defences raised to a claim made by a liquidator that a transaction is voidable is that the transaction forms part of a continuing business

17/05/2026

Company liquidations remain elevated in 2026, with the IRD continuing a firm enforcement approach. Practitioners regularly encounter files with provable tax debts alongside penal liabilities such as court-imposed fines and reparation orders, which sit outside the normal insolvency distribution framework.

When these penal elements surface, a structural tension is exposed that Parliament has long recognised and chosen not to fix.

Read the full article by Waterstone Wellington manager, Bede Henderson

Company liquidations remain elevated in 2026, with the IRD continuing a firm enforcement approach. Practitioners regularly encounter files with provable tax

14/05/2026

A common question regarding the current state of the economy and insolvency is: “How much longer do we have left of this?” Over the past three years, insolvency activity has risen significantly, reflecting the challenging economic and trading conditions many businesses face. Unsurprisingly, many are now wondering when some of that pressure might finally begin to ease.

Although it is difficult to forecast what the economy as a whole may do, we can use historical data to forecast the insolvency market, which is closely correlated to the state of the economy.

Read the full article by Waterstone senior analyst, Ben Jury

A common question regarding the current state of the economy and insolvency is: “How much longer do we have left of this?” Over the past three years,

14/05/2026

When comparing the April 2026 liquidation figures with prior years, the data reveals a critical narrative: while the "April dip" occurred as expected, the underlying insolvency trend remains at its highest point in over a decade.

In April 2026, 188 companies were placed into liquidation. This is a sharp drop from the 269 liquidations recorded in March 2026. However, looking at April in isolation is a statistical trap due to the holiday-induced processing lag.

To understand the true comparison with prior years, we must look at the quarters immediately surrounding the April bottleneck. The first quarter (Q1) data leading into April strips away the holiday anomaly and exposes the severe pressure businesses are facing, driven largely by aggressive Inland Revenue Department (IRD) enforcement of tax arrears.

• Q1 2026: 669 liquidator appointments. (The highest first quarter in 10 years).
• Q1 2025: 619 liquidator appointments.
• Q1 2024: 502 liquidator appointments.

This shows a 33.3% increase in business failures going into April 2026 compared to the same period in 2024.

30/04/2026

Economics is personal.

It was a privilege for the teams at Waterstone and Gravity Credit Management to host Barbara Edmonds, Labour’s Finance Spokesperson, for a breakfast discussion this morning on the QT Auckland rooftop.

What stood out most wasn’t the policy discussion, but Barbara’s down-to-earth and authentic approach. Her ability to connect the "macro" of finance back to the "micro" of everyday New Zealanders was incredibly refreshing.

She shared powerful personal anecdotes about how social safety nets shaped her own life journey, a poignant reminder that economic policy isn’t just about balance sheets; it’s about people and the opportunities we create for one another.

The room was packed, the questions from our guests were sharp, and the dialogue was exactly what we need more of in the business community: authentic, direct, and grounded in real-world experience.

A huge thank you to Barbara for being so generous with her time and stories, and to everyone who joined us at the Viaduct to make the morning such a success.

22/04/2026

Join Waterstone and Gravity Credit Management when we host MP for Mana, and Labour Spokesperson for Finance and Economy, Savings and Investment.

She was formerly the Minister of Revenue, Economic Development, Internal Affairs, and Pacific Peoples, as well as Associate Minister of Finance, Cyclone Recovery and Housing during the 53rd Government.

Come join us as we hear about her take on the New Zealand economic landscape and Labour’s financial policy framework. Guests can look forward to warm coffee and a delectable breakfast, as well as a Q & A session facilitated by Damien Grant.

https://www.eventbrite.co.nz/e/breakfast-series-with-hon-barbara-edmonds-tickets-1985551679523

21/04/2026

Section 9 of the Law Reform Act 1936 (the Act) provides a statutory charge over insurance proceeds, allowing claimants to recover insurance moneys directly from insurers when the insured faces a liability. This charge is triggered when an event gives rise to the liability, even before the exact amount is determined. It ensures that insurance proceeds are used to cover the insured’s liability, and the charge takes precedence over other claims. Claimants can pursue the insurer directly in court, treating the insurer as if it were the insured party.

Section 9 is particularly useful for liquidators, who can access insurance funds when a director or insured person is unable to pay due to insolvency or an inability to cover any judgment due to limited funds. For instance, if a liquidator brings a claim against a director for breaches of directors’ duties under the Companies Act 1993, and these breaches are covered by Directors and Officers liability insurance, the liquidator can add the insurer as a party to the proceeding under section 9. The liquidator may also choose to bring the claim solely against the insurer. This section enhances the prospects of recovery for creditors, especially when directors of liquidated companies have little personal funds available.

Read the full article by Waterstone senior in-house cousel, Kelly Ann C***s

Section 9 of the Law Reform Act 1936 (the Act) provides a statutory charge over insurance proceeds, allowing claimants to recover insurance moneys directly from insurers when the insured faces a liability.

21/04/2026

In Johnson Price Holdings Ltd v Norris [1], the liquidator arranged with the landlord of the liquidated business to continue its lease while he tried to sell the liquidated business as a going concern. The parties agreed via email that “the landlord would rank in priority with the liquidator” for the rent.

The liquidator failed to find a buyer and indicated that there would be insufficient funds realised in the liquidation to meet this rental obligation. The landlord sued the liquidator for the rental arrears. The liquidator’s position was that the landlord would receive an equal distribution with the liquidator only once the liquidator received any remuneration.

Furthermore, he contracted in the name of the company, and had no personal liability.

Read the full article by Waterstone junior in-house counsel, Airu Teng

Johnson Price Holdings Ltd v Norris

16/04/2026

Packed House at RITANZ!

Who knew discussing the Companies Act could draw such a crowd? Last night, it was a full house at the monthly RITANZ members meeting as Waterstone Insolvency's Adam Botterill and Wynn Williams’ Greg Simms took the floor!

They sparked a lively discussion, diving deep into directors’ liability. Adam and Greg served up some practical insights on current compensation trends, the rise of creditor-friendly outcomes, and why direct creditor claims under S301 are really stealing the spotlight right now.

There is a very clear shift happening toward creditor-focused remedies and it’s keeping liquidators, creditors, and directors on their toes with a whole new set of practical challenges!

A big thank you to Rachael Peacock and Emma Kanai for your excellent organisational efforts behind the scenes.