Corporate Recovery Services

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The changing economic, social and political environment both in New Zealand and globally can lead to business failure, or to putting at risk the equity capital of a business enterprise.

Turnaround Services

From time to time businesses may fail to perform to expectation resulting in declining profitability and restricted cash position. At Indepth Forensic we are experienced in diagnosing the causes of business underperformance, identifying solutions and charting a course for the directors to restore their company to profitability and cash flow strength.

Through this process, the directors of a company underperforming and approaching a solvency crisis, can avoid the pitfalls of insolvency and restructure their affairs in an internal, creative manner.

Scheme of Arrangement

A Scheme of Arrangement is a rescue package designed to give creditors a better return than they would otherwise get if the company were to be placed into liquidation.

It is usually proposed by the directors or a third party as part of a formal process of protecting the business whilst providing improved returns to stakeholders.

Voluntary Administration

The new Voluntary Administration regime came into force on 1 November 2007. Companies which may be insolvent or potentially insolvent may, by the appointment of an administrator, seek protection from creditors seeking to enforce their claims.

VA will be especially relevant to insolvent companies which have an underlying viable or potentially viable business and which have honest and capable management.

Receivership

Receivership is usually instituted by a Secured Lender such as a bank or other financial institution upon default of the debtor of a registered security.

Secured Creditors appoint Receivers and Managers to act in their interests, possibly to trade on the business and market it as a going concern. If this is not possible, the Receivers and Managers would sell the assets to maximise the return to the Secured Creditor.

Receivers and Managers may be appointed at the same time as Liquidators.

Voluntary Liquidation

A Voluntary Liquidation is a formal winding up of a company at the request of shareholders. Often this action is taken when it becomes apparent the company does not have to ability to continue to trade and there is doubt about the solvency of the enterprise.

Court Liquidation

Formal liquidation of companies by order of the High Court, is instigated by creditors or other aggrieved parties usually on the grounds of insolvency to recover their debt from the assets of the company.

Liquidators will immediately safeguard the assets of the company for realisation and conduct investigations into the company's past trading and the actions of the directors.

Provisional Liquidation

Provisional Liquidation is a pre-cursor to Court Liquidation designed to safeguard the company's assets whilst the Court considers the formal liquidation application.