Former Hanover Finance boss Mark Hotchin cut a deal with the tax department after an audit of one of his forestry investments forced him to wind up the companies involved.

Hotchin’s MSH Forests and subsidiary DF Forestry Holdings shut up shop in December after the investment companies failed following the Inland Revenue investigation, according to the first liquidators’ report.

Read the full artilce on line >>> scoop.co.nz

The high-profile former barrister behind a bid by farmer Alan Crafar to reclaim his dairy empire is facing insolvency charges and has been barred from leaving the country.

Vinay Deobhakta, 43, of Tauranga, appeared in Hamilton District Court yesterday – the morning after featuring on Campbell Live about his hand in a planned Crafar buy-back.

Read the full article on line >>> NZ Herald – nzherald.co.nz

Another $2 million of debt has been added to the slate of Terry Serepisos, the owner of the Wellington Phoenix football team.

In the High Court at Wellington today, a Waipukurau lawyers’ nominee company formalised the debt he personally owes it.

Read the full article on line >>> The Dominion Post

Loop-holes in Bill allows totally inexperienced or rogue practitioners to become insolvency “specialists” as long as they are 18 years of age.
There is insufficient regulation in New Zealand to protect investors and business owners against inexperienced insolvency practitioners, says KPMG NZ.

Read the full article on line >>> KPMG media release

Insolvent banks might be able to continue to operate at a basic level under plans to be released by the Reserve Bank for consultation next week.

Finance Minister Bill English signalled yesterday that the Government would soon begin consulting on how it would maintain financial stability in the event of a bank failure once the retail deposit guarantee scheme expires at the end of the year.

Read the full article on line >>> stuff.co.nz

Nearly 3000 New Zealanders went broke in the year to June because of losing their jobs.

An analysis by the Insolvency and Trustee Service [ITS] shows that in 42 per cent of personal insolvency cases last year, unemployment or loss of income was the major cause.

A total of 6426 people were declared insolvent in 2009-10, an increase of 14 per cent on the previous year.

Read the full article online >>> NZ Herald – nzherald.co.nz

“Staggering” is how a High Court judge described the behaviour of a pair of property developers and their indebtedness.

Associate Judge Hannah Sargisson was left aghast at Cameron Marsh and Mark Perriam, who owed more than $146 million after the failure of their North Shore Perron Group.

Read the full article online >>> NZ Herald – nzherald.co.nz

The Inland Revenue Department, chasing $742 million in tax owed by failed companies and bankrupts, expects insolvencies to grow in the next two years and has urged a crackdown on ”soft” liquidators.

IRD commissioner Bob Russell told Parliament’s Finance and Expenditure Committee today the department wants tighter controls on liquidators that fail to squeeze out the best possible return for creditors of failed businesses. The tax collector’s annual report criticised the use of so-called friendly liquidators who didn’t delve deeply enough into the affairs of failed ventures.

Read the full article online >>> stuff.co.nz

Financial irregularities have been uncovered in a failed G.J. Gardner Homes Auckland franchise which owes creditors $1.8 million.

An initial report by Anthony McCullagh and Stephen Lawrence, of PKF Corporate Recovery, on Affordabuilt, trading as G.J. Gardner Homes Franklin and Papakura, found it insolvent and raised questions about how it was run. David Gulland is listed as director of Affordabuilt.

Read the full article online >>> NZ Herald – nzherald.co.nz

NZ Companies Office records for AFFORDABUILT LIMITED.

• Director: David Edwin GULLAND
• In Liquidation from 08 Sep 2010
• Liquidator:PKF Corporate Recovery & Insolvency (Auckland) Limited
• Liquidator reports

Other companies directed by David Edwin GULLAND (as at 20 Oct 2010) include:
SODA DEVELOPMENTS LIMITED
SODA PROPERTIES LIMITED
DAVE GULLAND MANAGEMENT & SERVICE COMPANY LIMITED

An offer to repay creditors owed $93.9 million has been met with disdain from BNZ and sparked legal action against the Remuera businessman who tried to develop Orewa’s Kensington Park and Taupo’s Huka Falls Resort.

The bank says Patrick Fontein, 45, could only repay such tiny portions of his debts that it cannot agree to his attempts to appease it.

Read the full article online >>> The NZ Herald – nzherald.co.nz