Corporate Insolvency

About

Expert Panel Discussion
Analysis of the Insolvency Practitioners Bill and implications for the insolvency community

David Levin, Partner, Deloitte
Greg Sherriff, Associate, Grant Thornton
James Caird, Senior Associate, Simpson Grierson
John Fisk, Partner, PricewaterhouseCoopers
Michael Bos, Barrister

New Regulations and Case Law Developments
Insolvency practitioners’ fees and charges
The impact of the new Financial Markets Authority
Developments in Cross-border insolvency
Latest updates on Voluntary Administration Personal Property Securities Act developments
Rural insolvency and receiverships
Funding insolvent company claims
Investor redress regarding financial companies
Insolvent trading trusts

Gain Insights From Industry Leaders

PricewaterhouseCoopers
Deloitte
Grant Thornton
KPMG
Chapman Tripp
Bell Gully
Minter Ellison Rudd Watts
Reserve Bank of New Zealand
ANZ National
Bank of New Zealand
Rabobank
Lowndes Associates
Stace Hammond
BDO New Zealand
Simpson Grierson
Meredith Connell
University of Canterbury  
McDonald Vague
Duncan Cotterill

Corporate Insolvency is in the midst of a massive overhaul. The astronomical jump in the numbers of liquidations being administered, the bad practice of a small minority of practitioners and a lack of conformity in the past has led to an avalanche of new regulations and case law developments this year.

The 10th Annual Corporate Insolvency Conference addresses these changes head on. With an engaging and thought-provoking programme, it will enlighten and inform attendees of recent changes, detail how practitioners will be affected in the near future and examine the implications these changes will have on the industry at large.

Gain valuable insights from industry experts such as Maurice Noone of PricewaterhouseCoopers as he discusses the latest rural insolvency and receiverships cases, and Murray Tingey of Bell Gully as he examines investor redress in the case of financial company demise.

Delve into the nitty gritty aspects of the Insolvency Practitioners Bill, including how it will actually function on the ground and if it goes far enough to protect the integrity of the insolvency system.

Examine the options available for funding insolvent company claims and reflect on how current lending and funding approaches within the banking sector will effect your recapitalisation and restructuring efforts.

Explore troublesome and contentious issues such as practitioners’ fees and charges, with Nick Malarao from Meredith Connell and trading trust insolvency with Kalev Crossland of Stace Hammond.

In such a volatile climate you cannot afford to miss this up-to-the-minute market driven event. Keep your competitive edge, mix and network with industry leaders and make sure you are fully informed moving into 2011.

Agenda

Agenda: Day 1

8.30

Registration and coffee

9.00

Opening remarks from the Chair

Mike Whale, Consultant, Lowndes Associates

Investigating the Insolvency Practitioners Bill

9.10

Breakdown of the Insolvency Practitioners Bill

In April 2010 the Insolvency Practitioners Bill was introduced to Parliament. This session will give a breakdown of the Bill and what it means for corporate insolvency practitioners.
• Extending the powers of the Register of Companies
• Changes to disqualification criteria under the Companies Act
• Establishment of electronic register

Sheryl Chase, Policy Analyst, Ministry of Economic Development

9.50

Panel Discussion: Implications of the Insolvency Practitioners Bill for the corporate insolvency community (Panel)

The Insolvency Practitioners Bill has been introduced in an effort to weed out a minority of rogue insolvency practitioners, who are capitalising on the recent increase in company insolvencies. There has been considerable debate however on how the new IPB will actually function on the ground and if it goes far enough to protect the integrity of the insolvency system.
• Should insurance be compulsory?
• Is the problem unregulated appointees or unregulated appointers?
• What level of registration will be needed for supervisors?
• Will it be successful in weeding out bad practice?
• Untried model – where are the potential problem areas?

David Levin, Partner, Deloitte
Greg Sherriff, Associate, Grant Thornton
James Caird, Senior Associate, Simpson Grierson
John Fisk, Partner, PricewaterhouseCoopers
Michael Bos, Barrister

11.10

Morning tea

11.30

Economic outlook and what the future holds for insolvency professionals

The GFC is slowly receding and the NZ economy is beginning to pick up. As the number of company insolvencies reduce what can insolvency professional expect coming down the line? What effects will the European debt crisis have on companies with funding and investments sources there?
· Areas which are still struggling
·Future opportunities and restructuring and repositioning of assets options
·Increased optimism and effect on sales of going concerns
·Possible aftershocks and effect of economic uncertainty in Europe

David Hargreaves, Stability Analyst, Reserve Bank of New Zealand

Speaker has declined permission for his material to be online

12.15

International trends in restructuring of private equity investments

In the wake of the GFC many private equity firms are under increased pressure. Challenges include difficulties in raising capital but also protecting the funds and returns of investors as the value of their company portfolio deteriorates. With this in mind this session looks at recent developments in restructuring private equity deals.

James Twigg, Senior Solicitor, Chapman Tripp
Cathryn Barber, Principal, Chapman Tripp

12.55

Lunch

1.45

A review of Voluntary Administration and its uptake in New Zealand

Despite Voluntary Administration existing in New Zealand since November 2007, its uptake and application is still relatively low. This session investigates how VA has been operating within NZ, where it has been applied and when it has actually worked.
• How many Voluntary Administrations have there been?
• How often have deeds of company arrangement (DOCAs) been signed?
• What have been the objectives of those DOCAs?
• How successful have DOCAs been?
• How successful have disaffected creditors been in objecting to the VA process or to the DOCA?

Mike Whale, Consultant, Lowndes Associates

2.30

The demise of finance companies, What were the causes and what are the lessons for the future?

• The principal causes behind many of the failures
• The problems with moratoriums or restructuring arrangements
• Lessons for the future
• Impact of the Crown's Retail Deposit Guarantee Scheme for finance
companies

David Bridgman, Partner - Restructuring & Corporate Finance, PricewaterhouseCoopers

3.00

Analysis of the latest rural insolvency and receivership cases

The importance of agriculture to the New Zealand economy means the success of recent receiverships has far reaching consequences not only for creditors but the economy at large. This was demonstrated by the Reserve Bank of New Zealand’s recent call for an increase in funds from banks to the rural sector.
• Common themes in the lead up to receivership
• Day one processes and what could be done differently
• Comparison between larger corporations and lessons learned
• Impact of potential overseas ownership on sector and NZ corporations

Maurice Noone, Managing Partner, PricewaterhouseCoopers

3.35

Afternoon tea

3.50

Funding insolvent company claims

A litigation funding arrangement entered into by a liquidator of an insolvent company may not only be in the interests of the creditors of the company. It may serve a public interest function if it means that directors and others who are guilty of misfeasance are brought to account. Such agreements are becoming increasingly common in New Zealand although the law governing them remains relatively undeveloped when compared with that in Australia and the United Kingdom.
• The statutory basis in the Companies Act 1993 for a liquidator’s power to enter into litigation funding arrangements
• New Zealand and overseas case law developments

Lynne Taylor, Senior Lecturer in Law, University of Canterbury

4.30

Potential traps when considering a hive-down as a restructuring strategy

While a hive-down has traditionally been seen as the simplest form of company reconstruction, recent case law has exposed some interesting issues concerning directors’ liability.
• Ensuring the hive-down is not a premature decision
• Taking the company’s goodwill into account
• Importance of reviewing the company’s assets prior to the hive-down
• The need to consider all creditors including contingent creditors
• The Commissioner as creditor

Shane Kilian, Associate, Duncan Cotterill

5.10

End of day one & networking drinks

Agenda: Day 2

9.00

Opening remarks from the Chair

John Vague, Consultant, McDonald Vague

Analysis of redress available to investors and creditors in contentious insolvency cases

9.05

What happens when a trading trust goes insolvent?

As Trading trusts are becoming more common in New Zealand, issues have arisen in cases where the trading trust or the corporate trustee becomes insolvent. Recent case law helps shed some light on this emerging issue.
• Directors’ obligations concerning incurring debt and distribution of company wealth
• Recovering distributions made to beneficiaries – when is this an option?
• Can subrogation still be exercised where property has been distributed to other trusts?
• Problems faced by creditors when trading trusts go insolvent

Kalev Crossland, Partner, Stace Hammond

9.45

Examination of investor redress where wrongdoing has been established in the failure of a financial company

• Current policies on professional indemnity insurance and its use in defending criminal proceedings
• Tracing and the proprietary right of individual investors to particular funds
• Issuing proceedings against a variety of individuals involved including directors, auditors, trustees and PI insurers
• Cost of issuing proceedings and the current statutory and regularly framework for class actions
• Do current measures act as a sufficient disincentive for wrongdoing to occur or is there a need for reform?

Murray Tingey, Partner, Bell Gully

10.25

Morning tea

10.45

Insight into recent court decisions regarding insolvency practitioner’s fees and charges

Recent court decisions made under the Companies Act 1993 have highlighted the confusion which surrounds the fees insolvency practitioners can charge. Medforce 1 and 2 (2001) laid out the general principles of the Act and offered specific guidance on how they were to be applied. Problems have arisen however in the application of the Medforce 1 principles to the facts of specific cases. The Roslea Path Ltd judgment (Dec 2009) reconsidered the two earlier decisions on the topic of liquidators remuneration and this session will look at the ramification of said judgment to the corporate insolvency community.
• Principles of personal integrity and proportionality
• Prospective and retrospective applications
• Voluntary disclosure of remuneration deducted
• Role of the Court
• Adjustments to thresholds articulated in Medforce 2
• Appointment of an assessor to assist in the task of a retrospective application

Nick Malarao, Associate, Meredith Connell

11.25

Analysis of the Model Law on cross-border insolvency and its impact on the Trans-Tasman Regulatory Framework

Both New Zealand and Australia have adopted the United Nations Commission on International Trade Law’s (UNCITRAL) Model Law on Cross-border Insolvency. It standardises insolvency procedures which have an international dimension and further strengthens the 2006 insolvency reforms undertaken by New Zealand. These regulatory changes provide a solid foundation to further enhance the Trans-Tasman Regulatory Framework.
• Overview and application of the UNCITRAL Model Law on Cross-border Insolvency
• Recent judicial decisions and implications for practitioners
• The future direction and application of the Trans-Tasman regulatory framework

Shaun Adams, Director, Restructuring & Insolvency

12.05

Lunch

1.05

Panel Discussion: Shedding light on the current lending and recapitalisation trends within the banking sector (Panel)

Access to funding and the release of capital remains a serious hurdle to corporate insolvency restructuring efforts. This session looks at the banking sectors’ current approach to loans and funding.
• Receiverships and work out strategies
• Rural sector approach and protecting market value
• Loan covenant strategies and agreements
• Distressed loans and banking enforcement

Grant McGregor, Head of Corporate Lending Services, ANZ National
Tony Arthur, National Managing Partner, AgriBusiness
Antony Cliffe, Head of Special Asset Management, Rabobank

1.50

Securities (Moratorium) Regulations 2009: The impact of the regulations and requirements placed on debt issuers and financial companies

From January this year companies proposing moratoria must provide investors with tailored disclosure documents, outlining key information about the moratorium and the alternative options available. This will ensure investors have access to the views of directors, trustees and independent experts when making decisions.
• Breakdown of the new regulations
• Involvement of an independent expert and implications on cost
• Options for capital restructuring, repayment plans and the appointment of a receiver
• Implications for companies already in moratoria

Brian Mayo-Smith, Senior Partner, BDO New Zealand
Andrew Bethell, Associate, Business Recovery and Insolvency

2.30

Afternoon tea

 

The impact of recent case law on the Companies Act and Personal Property Securities Act

2.45

How the “continued business relationship (running account)” under the Companies Amendment Act 2006 is being applied

The removal of the “ordinary course of business” defense under the Companies Amendment Act (CAA) 2006 and the introduction of the “running account” principle has created some contention over what constitutes a “running account”. Case law offers further clarification on how the principal is actually being applied.
• A review of recent case law within New Zealand
• What constitutes a ‘running account’?
• Is Australian case law being applied and under what circumstances?

Andrew Horne, Partner, Minter Ellison Rudd Watts

3.25

Personal Property Securities Act – Australia and New Zealand

Australia intends to introduce its PPSA with effect from May 2011. What will New Zealand businesses and Insolvency Practitioners need to know about the Australian regime? There are many similarities, and some subtle differences. In New Zealand, what developments have occurred over the last 12 months?
• The shape of Australia’s PPSA
• Key impacts for New Zealand Practitioners
• Important recent PPSA developments in NZ

James Burt, Principal, Chapman Tripp
Michael Arthur, Partner, Chapman Tripp

4.10

Closing remarks from the Chair and end of conference

Sponsors/Partners

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