In our 44th Insolvency by the Numbers, we look at the July 2024 data set and we review how the month has tracked compared to prior months and years. Unsurprisingly the Reserve Banks made no change to the OCR at their July 2024 announcement. Banks and independent economists now expect the first drop may come in November 2024. June quarter inflation figures came in at 0.4, bringing the annual inflation rate to 3.3. This was driven largely by tradable inflation coming down, non-tradeable (“domestic”) inflation appears to be a bit stickier however. No doubt the next quarter inflation figures may not show as much of a drop with the recent rates rises pushing through and the adjustment to tax bands…

Insolvency by the Numbers: NZ Insolvency Statistics June 2024 In our 43rd Insolvency by the Numbers, we look at our data set for June 2024. We review how the month has tracked compared to prior months and years. We once again await the Reserve Banks latest announcement around the OCR in July 2024 to see if there will be any signal of change in when the rates may drop. The consensus appears to be that there will be no change till 2025 and no signalling otherwise. There are however murmurs that when the rates begin to drop they will be dropping quickly, time will tell how this plays out. Business confidence is reaching new lows, this includes the expectation to…

In our 42nd Insolvency by the Numbers, we look at our data set for May 2024. We review how the month has tracked compared to prior months and years. In the last month the Reserve Bank has continued with no change to the OCR and indicated not to expect any reductions until 2025. We are now beginning to see a further tightening being covered in certain sectors particularly construction where new work has become scarce and those that are not busy finishing off existing projects are beginning to look to the renovation space. The government has released their latest budget showing cuts to a number of ministry’s and projects that are not deemed essential, there has also been some tax…

In our 41st Insolvency by the Numbers, we look at our data set for April 2024. We review how the month has tracked compared to prior months and years. In the last month we have seen the latest release of unemployment data showing a rise to 4.3% for the March 2024 quarter, with expectation that it may continue to increase. We have seen a decrease in inflation driven largely by tradeable inflation, meanwhile the non-tradeable inflation continues to remain high, showing we still have some work to do to get over inflation in NZ. The Reserve Bank has continued with no change to the OCR during the month with the next announcement due in May 2024 hoping to shed some…

Company liquidation can have significant ramifications not only for the business itself but also for its directors, particularly concerning their credit ratings and overall financial standing. When a company faces insolvency and enters into liquidation, directors may find themselves confronted with various challenges and consequences that extend beyond the dissolution of the company. In this article, we explore the impact of company liquidation on directors' credit ratings, the broader implications of association with an insolvent company, and strategies directors can employ to mitigate the effects. Impact on Directors' Credit Ratings: One of the immediate concerns for directors following company liquidation is the potential impact on their personal credit ratings. While company liquidation itself does not directly affect directors' credit scores…

In our 40th Insolvency by the Numbers, we look at our data set for March 2024. We review at how the month has tracked compared to prior months and years. Company Insolvencies – Liquidations, Receiverships, and Voluntary Administrations March 2024 insolvency appointments continue the trend seen last month being notably up in March 2023. Total appointments for the month were 291, this is 26% higher than 2023 and almost double each of the years back to 2019. March 2024 is 144 appointments above the long-term average of 147 monthly appointments. 2024 continues showing strong appointment figures exceeding the last 7 years for the cumulative total of the 3 months to date. As predicted March figures were up and we expect…

In our 39th Insolvency by the Numbers, we look at our data set for February 2024. We review at how the month has tracked compared to prior months and years. Notable economic events for the month include the Reserve Bank keeping the Official Cash Rate level at 5.5 percent with no change to when we may begin seeing a drop in the rate in 2025. Economists are of the opinion that drops will be sooner than this in the later half of 2024. The coalition government has come to the end of its first 100 days, having enacted the bulk of their 49 points they set out to implement. While the bulk of these were undoing legislation and changes made…

What is a Statutory Demand and When is it Used for Debt Collection? A Statutory Demand serves as a formal court notice compelling a debtor company to settle an outstanding debt owed to a creditor, marking the initial step in the legal process of initiating the "winding up" of an insolvent company in accordance with Section 289 of the Companies Act 1993. Essentially, a Statutory Demand functions as a litmus test for a Debtor Company, evaluating its financial viability by determining its ability to meet its obligations and settle debts promptly. It should however only be used as a debt collection tool if there is no dispute. A disputed debt has a different process to follow. A statutory demand should…

In our 38th Insolvency by the Numbers, we look at our data set for the year end 2023 in review along with January 2024. We look at how the year has tracked compared to prior years and what to we can expect in 2024, followed by a look at how January 2024 has compared to the last few years. The latest data release shows that inflation has fallen however the portion of it generated by non-tradeable inflation figures remains high. Economists are predicting that it is unlikely that we will see an official cash rate drop till the later part of the year with come commentators still expecting the first drop in 2025. The property market however has now stabilised…

In our 37th Insolvency by the Numbers, we look at our data set for November 2023 and past years to see how the month has tracked and what may be coming up in the coming months. We now have a coalition sorted giving people an idea of what is in store for the next 3 years, the Reserve Bank has kept the OCR stable and has said that rates will not be coming down till 2025 as expected. With Christmas fast approaching businesses are rushing around trying to complete work for customers before the year end when the customer has had all year to get it sorted but left it to the last minute, so business as normal for this…

Insolvency by the Numbers: NZ Insolvency Statistics October 2023 In our 36th Insolvency by the Numbers, we look at our data set for October 2023 and past years to see how the month has tracked and what may be coming up in the coming months. With October and the election finally at an end, except for specials, we have an indication of what party will be front footing it into the next 3 years. The consensus that came out over the election campaign however was that getting back on the good footing may take some time, with cuts in government spending appearing to be an interesting topic. Whether this happens only time will tell, but hopefully we will see a…

In our 35th Insolvency by the Numbers, we look at our data set for September 2023 and past years to see how the month has tracked and what may be coming up in the coming months. With September coming to an end, we are in the last two weeks of NZ’s latest election campaign. As predicted it has been a month of promises and debates from all parties. Unsurprisingly like with a lot of our past elections there is a level of uncertainty across all markets from housing, the economy and the stock market. The September OCR announcement once again saw no change to the rate, however heavy emphasis was given to the idea that we may be in line…