McDonald Vague The Insolvency & Business Recovery Specialists
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Welcome to McDonald Vague
McDonald Vague is New Zealand's first specialised insolvency and business recovery practice. The firm offers a high level of specialist expertise, combined with an efficient personalised service.
About McDonald Vague
Meet our Partners
Peri Finnigan
DDI:
09 303 9519
Boris van Delden
DDI:
09 306 3342
Roy Horrocks
DDI:
09 306 3332
Tony Maginness
DDI:
09 303 9511 -
Services
Our Services
As New Zealand's leading specialist insolvency and recovery practice our focus and expertise is quite specific.
Our value proposition is simple: we achieve the best possible outcome.
We earn our clients' trust and build our relationships by listening well, keeping clients informed, being available, being responsive and acting with integrity. Our focus is always on achieving the best possible outcomes for our clients, and we have a proven track record of results.
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Industries
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Contact
Postal Address:
PO Box 6092
Wellesley St
Auckland 1141
New ZealandPhysical Address:
Articles
Archive
Trusts in Crisis
Traditionally the following entities have been used to conduct business; Sole Traders, Partnerships and Companies Over past recent years it has become more common for the trading entity to be a Trading Trust. A Trading Trust is a trust which is formed for the purpose of carrying on a business.
Read Full ArticleLegislation Intended to Look After Workers Backfires
Some years ago some meat processing companies failed. Workers lost their jobs and whereas wages and holiday pay were preferential, redundancy due ranked as unsecured.
Read Full ArticleLawyers Letters and Costly Delays
Insolvency Practitioners liaise with the law profession on a daily basis. As in all professions it is easy to communicate with some practitioners and difficult to communicate with others. In such circumstances time and effort is wasted. Increased costs reduce the amount which will be available to creditors and delay any payout. We are invariably happier when the solicitor on the other side has the skill to present his or her clients' case clearly, concisely and in a way we understand.
Read Full ArticleUnsecured Creditors Lose Out Again
Graeme McDonald and John Vague attended a Business Law Reform seminar in Wellington on Thursday, 22 November 2001. At that seminar Laila Harre, the Associate Commerce Minister, announced changes to the laws dealing with preferential payments.
Read Full ArticleThe Risk of Being Criticised By A judge Of The High Court
The intention of these articles was to give Chartered Accountants an appreciation of insolvency matters. If I have concentrated on the potential liability of the Chartered Accountant this is because the risks of the accountant being sued are very real and are not just theoretical or perceived.
Read Full ArticleThe Matrimonial Home at Risk
New Zealand is the home of small business. Each year thousands of businesses are started, and each year many businesses fail. Traditionally a person starting a business formed a company, put some assets or cash into the company, and borrowed money from a bank under the security of a debenture. The debenture was a charge over the whole undertaking of the business, and invariably the bank was covered.
Read Full Article'Friendly Liquidators' - A Further Discussion
A recent article discussed how companies on the verge of going bust are settling with trade and other creditors, then voluntarily winding up their businesses leaving the Inland Revenue Department out on a limb. This happens all too often. Also, there are as the title suggests too many "friendly liquidators".
Read Full ArticleThe Chartered Accountant and the Personal Property Securities Act
Chartered Accountants think of themselves as something quite different from bookkeepers. They regard themselves as business partners who can and do add value to the business of their clients. If they are sincere in this, they need a good working knowledge of company law, commercial law and the law of meetings and need to be in a position to advise their clients accordingly. They need to have the judgment to know when the services of a solicitor are required and need to be able to select the requisite solicitor.
Read Full ArticleSons Of Gwalia
The Sons of Gwalia decision which was handed down by the High court of Australia in January of this year, clarified three earlier decisions which were made in the years 2005 and 2006. The Sons of Gwalia case and the earlier decisions set out the circumstances where in Australia a shareholder or shareholders can make a claim against a company which will rank equally with the claims of the unsecured creditors.
Read Full ArticleThe Companies Amendment Act 2006
The Companies Amendment Act 2006 implemented on 1 November 2007 increases the transparency and accountability of Insolvency Practitioners and means significant changes to the administration of Insolvencies. The key changes are as follows
Read Full ArticleCowboys Need Not Apply
I empathise with creditors who are concerned about cowboys operating and competing in the insolvency field of expertise. These individuals want to make a fast buck and can give the whole profession a bad name. It is time to crack down on the cowboys!
Read Full ArticleRegister A Security Interest For Increase Of Creditor Protection
McDonald Vague insolvency and business recovery specialists strongly recommends businesses register their security interests on the Government's Personal Property Securities Register (PPSR), and increase their awareness of the consequences of non registration.
Read Full ArticleThe Brumark Case - Charge Over Book Debts – Fixed or Floating?
In an important judgment received this month in Re Brumark Investments Limited, the Privy Council upheld the concept of fixed charges on present and future debts but held that Re New Bullas Trading Limited [1994] 1 BCLC 449 had been wrongly decided.
Read Full ArticleFurnishing Lists of Creditors
On 8 August 2001 a case was heard before Laurenson J. Although the case was specifically to do with Tasman Pacific Airlines NZ Limited, the outcome of the case affects all liquidators.
Read Full ArticleINSOL Submission on Business Law Reform
I am pleased to submit the comments of INSOL New Zealand, on the Business Law Reform Bill 2001. INSOL is the New Zealand Chapter of INSOL International, the professional organisation of insolvency practitioners.
Read Full ArticleA Commentary on Cross-Border Insolvency Issues
Text of an address to a colloquium "Chinese Insolvency Law Symposium: Developing an Insolvency Infrastructure" held at the University of Hong Kong, 17-18 November 2000
Read Full ArticleBankruptcy Alternatives / Debtor's Options
Q: What makes a creditor secured? A: Secured creditors possess specific legal rights to take back ownership of an asset should the debtor default on the corresponding security agreement.
Read Full ArticleThe Sixth Schedule
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Read Full ArticleThe Seventh Schedule
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Read Full ArticleCross-Border Insolvency: Should New Zealand adopt the UNCITRAL Model Law on Cross-Border Insolvency (Report 52)
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Read Full ArticleTransactions between Companies and their Directors and Shareholders
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Read Full ArticleBurns v IRD Accounts Receivable Case
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Read Full ArticlePortacom Case
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Read Full ArticleNZ Bloodstock Case
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By McDonald Vague
A case of Vintage wine
Matakana was a winemaker. It had a related company, Goldridge, whose role was to market the wine. The Vintage companies ("Vintage") were set up to raise money from outside lenders and to hold that money to be paid when invoiced for the cost of the grape juice and for bottling the wine, and then supply the bottled wine to Goldridge. The use of the funds from Vintage's secured creditor was supposed to be monitored by an independent accountant. That accountant was supposed to be a cheque signatory and control the flow of funds according to the terms of the loan agreement.
Read Full ArticleLegal decision good news for employees and IRD, bad news for secured creditors
In August 2011, the High Court issued an important decision in Burns v Commissioner of Inland Revenue on the widely argued question of ”what is an account receivable?”. This followed an earlier decision (re Northshore Taverns, 2008) in which the High Court decided that “accounts receivable” amounted to ”book debts” only.
Read Full ArticleAn Alternative to Bankruptcy
When a person is faced with a bleak financial situation, bankruptcy may appear to be the only outcome. However, there are certain circumstances where this may not have to be the case. Part 5 of the Insolvency Act 2006 provides for alternatives for individuals facing bankruptcy – and the Subpart 2 proposal option can be very beneficial to affected parties.
Read Full ArticlePersonal insolvency - Part 5 proposals
A Part 5 Subpart 2 proposal under the Insolvency Act 2006 gives a debtor an alternative to bankruptcy. If the proposal succeeds, then the insolvent is bound by the proposal and does not have to comply with the usual provisions of a bankruptcy. For example, the debtor may carry on in business and have more than one bank account, and is not prevented from leaving the country.
Read Full ArticleRe-Insurance Difficulties Post Earthquakes
The recent catastrophes around the world have had a dramatic effect on the New Zealand insurance industry and the ability to obtain insurance. In particular the Christchurch earthquakes have made it more difficult and costly to obtain insurance cover for some of the properties and goods we need to secure. We asked Geoff Blampied, CEO, Aon New Zealand to provide some comments and advice on the subject. Geoff writes:
Read Full ArticleRecent Agri-Business Case Study
McDonald Vague has been appointed as receivers on a number of major appointments, including the recent receivership appointment of Tawera Land Company Limited “TLC”. This is an entity owning millions of dollars of farmland associated with bankrupt businessman Ken Thurston.
Read Full ArticleVoluntary Administration
Voluntary Administration provides a moratorium period during which the future of a company can be assessed by an independent party. That independent party then makes recommendations to creditors as to whether that company has a future and recommends the form that future should take. In practice, the moratorium period is usually a pathway to liquidation or a compromise (deed of company arrangement).
Read Full ArticleCompromises Between Creditors - Worthwhile Or Not?
This article discusses when to accept a compromise, suggests what modifications and amendments can be asked for, and when to reject a compromise.
Read Full ArticleThe Rights of Creditors When a Company Fails
When a company fails one of three things happens; The Company is placed into receivership or; The company enters into a compromise with its creditors or; The company is put into liquidation
Read Full ArticleThe Overdrawn Current Account
Each year we give advice to the clients of Chartered Accountants. We sit down with those clients, and sometimes their advisors, and analyse the situation. We hear what the company was doing and how it started. We learn the underlying weakness of the company and the event that triggered the visit to our offices. We prepare a draft statement of affairs and help the directors come to a decision as to what course of action they should adopt with their financially distressed company.
Read Full ArticleHow Liquidators Use Forensic Accounting Skills
A Chartered Accountant providing business services arrives at results through double entry bookkeeping. That is, for every debit there must be a credit. That same accountant, although they are excellent at their job, may be confused if they are asked to draw conclusions from inadequate records
Read Full ArticleDealing With Liquidators
A minor, but often emotive issue, is the car "owned" by the director. The director states it is their car, and it is registered in their name. Registration, however, does not prove ownership and if the car is in the company's accounts and shown on the depreciation schedule, the liquidator will fulfil one of their principal duties by taking possession of the car and selling it.
Read Full ArticleAn alternative to bankruptcy – the No Asset Procedure
The Insolvency Act 2006 was implemented on 3 December 2006. This Act streamlines personal and provides new alternatives to bankruptcy. The major change relates to a new alternative called the "no asset procedure." This procedure involves a one year term rather than the usual three year term in bankruptcy.
Read Full ArticleDirectors Liability When Companies Fail To Pay Debts When Due
McDonald Vague are solution providers for businesses at risk and specialists in business recovery. We deal often with liquidations of companies where the director has continued to trade an insolvent company. In many of those cases, prior to liquidation, the director/shareholder has increased the mortgage on his house and advanced further capital for a short term cashflow fix without taking out any security for that advance. If funds are advanced to the company, the director/shareholder should seek legal advice on obtaining security and registering that security on the Personal Property Securities Register prior to the advance.
Read Full ArticleEstablishing Insolvency
Many businesses are facing hard times in the current market. Your business might be one of them. Early action is critical in determining whether your business can be rescued or not.
Read Full ArticleSolvent Liquidations
McDonald Vague provides a specialist service conducting solvent liquidations. Companies are often put into liquidation this way when a business has been either sold, closed down or reorganised for tax and/or management purposes.
Read Full ArticleThe Personal Property Securities Act 1999
The Personal Property Securities Act 1999 ("PPSA") came into force on 1 May 2002. It reformed the law relating to security interests in personal property. The PPSA affects lending, leasing and other types of credit-providing activities. Personal property is given a wide definition by the PPSA. With few exceptions it covers any property someone can own, other than land. Non-compliance with the PPSA's registration rules can affect the order of priority of secured creditors and the rights of suppliers of stock and equipment in the event of a liquidation or receivership.
Read Full ArticleImportance Of A Registered Security Interest
McDonald Vague strongly recommends that businesses register their security interests on the Personal Property Securities Register ("PPSR"), and increase their awareness of the consequences of non-registration. Failure to utilise the PPSR can be a doubly expensive process in the event that their debtor company becomes insolvent.
Read Full Article