09 524 9238 or 027 577 0162 grant@randa.co.nz

We are often contacted by creditors, accountants, lawyers and business owners to determine the best course of action when a company is facing financial uncertainty. We attempt to work with the affected stakeholders to get the best possible result for them often in trying circumstances which sets Reynolds & Associates apart from other practitioners who often rely on the gleaning of information from the company balance sheet which is not always conducive to obtaining the best result.

Court Liquidations

We often serve as court appointed liquidators. Similarly, where directors or creditors wish for an urgent appointment we can act as interim liquidators. Our fees are recovered directly from the assets of the company in liquidation and therefore there is no direct cost to the applicant creditor.

A Court Liquidation is the result of an application that is made to the Court, usually by a creditor, to place the company in liquidation. The application is commonly used in debt collection if other avenues to collect the debt have been unsuccessful.

Approximately half of our annual liquidation appointments are as a result of creditor applications to the High Court. We accept appointments from High Courts nationwide.

Voluntary Liquidations

The directors and shareholders identify that the company is insolvent and the shareholders agree to appoint a liquidator by way of a resolution. The liquidator takes control of the company assets and records and works with the directors and shareholders to bring the company’s affairs to an orderly close. If a company is insolvent then the sooner the company is put into liquidation the better the outcome can be for all parties.

Under Section 241 of the Companies Act 1993, as a shareholder and/or director of a company which is unable to meet its financial obligations and you believe to be insolvent, you can seek to voluntarily place your company in liquidation.

You should discuss your options with professional advisors such as your accountants, lawyers and us to ensure that you are obtaining the best advice.

A Shareholder resolution to place a company in liquidation requires approval by 75% of the shareholders and we can prepare the appropriate resolution on your behalf if this is the desired outcome.

Solvent Liquidations

This is when the company has ceased trading and its existence is no longer required.

As a shareholder and/or director, you can appoint us to help you with your solvent liquidation. The appointment is made by way of special resolution by shareholders or directors.


We accept appointments as receivers for the purposes or realising assets and paying money to security holders. Our priority is to realise assets to the best advantage of the security holder(s) and ideally sell businesses as a going concern.

We are appointed as receivers by companies, financiers or individuals who have a registered security interest (i.e. General Security Agreement).

When you appoint us as receivers, we will work quickly with all stakeholders to understand the organisation, report directly to you and seek to realise assets to the value of your security.

Creditors Compromise

In certain situations a compromise can be reached with a company’s creditors to accept a scheme of arrangement to settle outstanding debt. We would formulate a realistic proposal and convene a meeting of the company’s creditors. We can be appointed Compromise Administrators to oversee the process. A creditor compromise can be an effective tool to rehabilitate a company.

Once the compromise is put to the creditors for consideration, the creditors must vote to approve the compromise. For this to happen there must be a majority in number and 75% in value of the creditors voting either in person, proxy or postal vote.

Voluntary Administration

As a director and/or shareholder you have the ability to appoint an Administrator. An administration process provides a moratorium period where a plan or Doca (Deed of Company Arrangement) is prepared and submitted to the creditors for approval.

It can be a useful mechanism to enable rehabilitation of a struggling but viable business.

Restructuring and Cashflow Management

If you are a company that is experiencing cashflow difficulties, we will work with you to help identify and understand the reasons why. We will appraise your current financial position, including reviewing cashflow and systems, and will provide you with recommendations as to the best course of action.

By getting us involved early, we can work with you to identify and resolve the underlying issues. We will provide you with sustainable, long-term solutions.

Personal Compromises

Personal Compromise is an alternative to bankruptcy. It is governed by Part 5 of the Insolvency Act 2006.

People that enter into a personal compromise rather than bankruptcy usually have a commercial and economic reason for doing so.

When a person enters into a personal compromise, a Provisional Trustee is appointed to manage the affairs of that individual. The Court is also notified of the compromise. A compromise is then put together and is put to the creditors for their consideration. A creditors meeting is held and if the creditors accept the compromise, the compromise is then put to the Court for the approval of the Judge.

All of the individuals’ personal guarantees (whether called up or not) are also creditors in the compromise. This is particularly important as people often assume that parties are not creditors because their personal guarantee is not currently being called up.

Once the compromise is put to the creditors for consideration, the creditors must vote to approve the compromise. For this to happen there must be a majority in number and 75% in value of the creditors voting either in person, proxy or postal vote.