Restructuring involves modifying a business’s structure to improve efficiency or address financial issues. This process includes assessing current operations, planning changes, and implementing these adjustments while minimising disruption. Professional advice is essential for success.
Struggling or insolvent businesses should not be managed alone. We are focused on saving New Zealand businesses from corporate failure. We work with business owners and their current advisors to strategically plan for the future of businesses and restructure. In some cases, we will also recommend adding other advisors with additional expertise.
There are many ways to save or restructure businesses. Often, it is hard to identify these strategies when business owners are subjectively analysing the business. Objectivity and expertise are crucial.
At Norling Law, we have expert restructuring lawyers who offer a FREE 30-minute Legal Consultation where we can discuss the issues, and we can add strategic value. After the discussion, we can decide whether we can help you and at what cost.
On numerous occasions we have been involved in restructures that is by way of a “hive down”.
A hive down generally involves three key steps:
Establishing a new company (or sometimes multiple companies to separate parts of the business and/or assets);
Selling the business and/or assets to that new company (or companies);
The old group using the proceeds of the sale to part-pay debt and then being struck off.
A hive down can attract new investors and provide a clean slate. It is also a perfect time to review inefficiencies and make changes.
A hive down is not always appropriate. A careful analysis is required. In many cases, companies cannot sell assets without secured creditor consent. A careful discussion will need to occur with secured creditors regarding either paying their debt or transferring securities. Further, there can be civil and criminal liability if a hive down breaches phoenix company laws (discussed below).
Phoenix companies rise from the ashes of failed companies and use similar names and have similar directors as the failed company.
A Phoenix company has a similar name as a failed company (that suggests an association).
When considering this issue, we ask the question, do people dealing with the Phoenix realise that they are dealing with a different “entity” to the one they used to deal with?
Director of a failed company cannot be:
A director of a Phoenix company;
Directly or indirectly take part in promotion, formation or management of Phoenix company; or
Directly or indirectly be concerned in or take part in the carrying on of the business of a Phoenix company.
The consequences to a director who gets this wrong could be:
Five years imprisonment;
A fine of up to $200,000;
A banishment from acting as a director of a company;
Personally liability for the debts of the Phoenix company.
There are exceptions to the rules and various strategies to avoid these consequences. We work with clients to ensure they implement the right strategies for their circumstances and avoid onerous consequences.
Our expert insolvency and restructuring lawyers assist clients to navigate this process correctly. There are many pitfalls if implemented incorrectly. We have successfully assisted clients in rescuing their businesses throughout New Zealand.
Please refer to our People for more information on who we are, our experience and how we can help you.
If our expertise can be of assistance, do not hesitate to Contact us for a conversation or Schedule a FREE 30 minute Legal Consultation with Brent.
We have offices on the North Shore in Auckland, New Zealand or can have the consultation by phone.
At Norling Law, we specialise in resolving a wide range of disputes. Our expertise covers commercial litigation, insolvency and restructuring, debt recovery, shareholder disputes, construction disputes, joint venture disputes, property disputes, contractual disagreements, and tax debt matters. We tailor our advice and solutions to suit the specific circumstances and goals of each client.
Norling Law has significant experience managing litigation cases throughout New Zealand’s court system. Our lawyers routinely advocate for clients in the High Court, Court of Appeal, Supreme Court, District Court, Building Disputes Tribunal, other tribunals, mediation, and arbitration. Our team’s capability has been recognised at the New Zealand Law Awards, demonstrating our proven track record of achieving strong outcomes for clients involved in complex disputes.
During your free initial consultation, we will take the time to understand your situation, review key facts, and identify potential solutions. Our aim is to provide you with clear, practical guidance on your options so you can make informed decisions about your next steps.
We take a strategic and commercially-focused approach to debt recovery. Depending on the circumstances, we may engage in negotiation, issue formal demands, initiate court proceedings, or pursue enforcement measures such as charging orders, security enforcement, liquidation, or bankruptcy with the goal of securing prompt and effective recovery of outstanding debts.
If you are facing a shareholder dispute, it is important to seek legal advice early. We assist by analysing the dispute, advising you on your rights and obligations, and working to resolve the matter through negotiation, mediation, or litigation where necessary, always seeking to protect your interests and minimise business disruption.
Our team has achieved strong outcomes in a wide range of commercial contract disputes. While each case is unique, our depth of experience and strategic approach consistently deliver favourable outcomes for our clients.
We provide targeted advice to resolve construction disputes in an efficient and cost-effective way. Whether dealing with contract breaches, payment claims, variations, or defective works, we focus on protecting our clients’ commercial interests while seeking pragmatic resolutions wherever possible.
Yes. We have extensive experience assisting clients facing tax debt issues with Inland Revenue (IRD). We provide clear advice on negotiating settlements, structuring payment arrangements, challenging assessments, and managing enforcement action, always aiming to minimise both financial exposure and legal risk.
We pride ourselves on our specialist expertise, practical approach, and strong client focus. Our recognition at the New Zealand Law Awards, positive client testimonials, and experience at the courts reflects our consistent ability to resolve complex legal disputes while delivering clear, commercially-driven advice.
Booking a consultation is straightforward. You can contact us by phone, email, or through the enquiry form on our website. Our team will promptly arrange a suitable time for your free initial consultation to discuss your matter.
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