"The aim is always to maximise net recoveries for creditors."
The financial services industry has undergone rapid and extensive change, with the recession and poor management forcing a growing number of companies into receivership. Numerous finance companies have collapsed. Private investors, as well as the government under the Deposit Guarantee Scheme, face considerable losses. Some depositors have lost their entire investment.
There have been proposals for the Financial Markets Authority (which replaced the Securities Commission in May 2011) to be given more extensive powers. Media articles have highlighted the fact that engaging certain receivers has resulted in significant fees being incurred with, in many cases, little or no results for investors.
These concerns make the challenges of trustees, financiers and us as receivers even more complex. Every receivership is different, which makes it even more imperative to engage the most appropriate insolvency specialists for the particular assignment. The firm must have a proven track record of maximising returns to creditors, together with the right charging structure and investigative skills. While a large firm may offer many advantages in terms of experience and profile, their fees may diminish the recovery for the stakeholders.
Outside of formal insolvency, we also have considerable expertise in performing a range of advisory, forensic and investigative work.
What's different about the McDonald Vague strategy
Experience and expertise
We are able to offer extensive financial services expertise, while practising responsible and realistic fee management. Our team has been involved in high profile finance company receiverships and moratoriums, so we understand the concerns of relevant parties.
We are also able to provide a range of advisory services including turnaround/restructuring advice and implementation, work-outs and investigating accountant reports, as well as carrying out formal insolvency appointments. Please visit our Restructuring and turnaround page for more information on the services we can provide in this area.
We make it a point to remain in regular contact with trustees, financiers and security holders, advising of our intended approach to the assignment. We also aim to provide regular updates on important matters as soon as they come to hand.
Without the right approach, there is a potential in some receiverships for the costs of realisation to significantly erode the recoveries. At McDonald Vague, we quickly implement strategies to ensure loan repayments continue to be made and loans in arrears are acted on appropriately. Where possible, we will negotiate to sell part of the loan book to third parties so the security holders receive payments as quickly as possible without incurring ongoing receivership costs. The aim is always to maximise net recoveries for creditors.
In conjunction with input from outsourced expertise where necessary, we develop recovery strategies for individual loans. We act commercially when implementing these strategies and act quickly to achieve the best possible return. We have excellent relationships with corporate lawyers and other professionals who can advise us where necessary. However, in cases where we have the requisite experience to make a decision, we do not unnecessarily incur the expense of engaging further professional services.
National resources and capabilities
We have around 16 full-time people on our staff. This includes two Partners and two Directors. We also have a number of experienced consultants that we can call upon as and when required. Our offices are located in Auckland and Hamilton.
As a medium-sized firm which only undertakes business recovery and insolvency work, we can operate independently and seldom have conflicts of interest compared to larger, multi-disciplinary firms.
McDonald Vague is a member firm of Chartered Accountants Australia and New Zealand (CAANZ), INSOL (international body of insolvency specialists) and the Forensic Accounting Special Interest Group. We adhere to the guidelines, rules, regulations and ethics of these bodies, and these associations provide an assurance of independence, service and integrity. Our Directors and staff have a varied background, with many having trained at major international firms such as PwC, KPMG and Deloitte.
We are also members of NZCA (an association of independent Chartered Accountants). We are able to undertake assignments anywhere in New Zealand and can align with a local NZCA firm for assistance. McDonald Vague will still control the assignment and ensure the same high level of expertise and service is maintained. Our clients benefit from the associated firm's local experience, as well as more cost effective fees as our travel expenses are reduced.
If you believe McDonald Vague may be able to assist you, please visit our staff profile page for direct contact details of our Directors. All such discussions are treated confidentially and do not commit you to appointing us in any formal capacity.