With 2025 behind us, we are taking time at the start of 2026 to reflect on significant developments in the restructuring and insolvency space from both New Zealand and around the world and look ahead to what's coming in 2026.
28 May 2025 - High Court provides guidance on insolvency practitioner independence and behaviour
The Court has provided guidance on various key topics in a voluntary administration and liquidation but was unwilling to remove the liquidators from office despite finding various breaches of statutory duty. Nevertheless, the Court imposed rarely seen conditions on the conduct of the liquidation including requirements to seek advice from Senior Counsel. Read more
5 June 2025 - High Court rules on a DOCA that provided for the company's liquidation
In response to a challenge to a DOCA on the basis of unfair prejudice, the Court has passed judgment deferring to the wisdom of voters at the watershed meeting in circumstances where the matters at issue were put squarely to, and approved by, creditors. Read more
11 July 2025 - Du Val litigation continues in 2025 (and expected to continue in 2026)
The Du Val statutory management has continued to facilitate the development of the law in NZ. The Court has struck out a claim that the FMA (in recommending statutory management) owed a duty to Du Val investors due to an absence of a sufficiently proximate relationship. The statutory managers are subject to ongoing challenge by the founders regarding what they describe as excessive powers granted to them. Read more
13 October 2025 - IRD speaks out on enforcement action
Despite an increase in IRD recovery activity (via petitioning for liquidation and exercise of direct deduction powers), total tax and entitlement debt is up 17.7% year on year to NZ$9.3 billion in 2025. This has contributed to the well-publicised increase in insolvencies in 2025. Read more
10 November 2025 - Supreme Court allows an appeal in connection with a permanent injunction and extant foreign proceedings
The Supreme Court has reinstated rare anti-suit and anti-enforcement injunctions relating to an agreement and judgment from the Courts of Kentucky that the Court has determined was obtained fraudulently. These are court orders with significant and extraterritorial effect that are not commonly issued by New Zealand courts. Read more
26 November 2025 – OCR cut to 2.25%
RBNZ took barely a year to cut the OCR from 5.5% to 2.5% and further cut the OCR to a three-year low at 2.25% in November 2025, although the RBNZ has indicated that this easing cycle might be coming to an end. Insolvency statistics in 2025 made for a challenging read (with October 2025 recording the highest monthly number of liquidations since 2011) and that could be compounded in 2026 if the trajectory of interest rates track upwards. Read more
19 December 2025 - OIO reforms underway to simplify foreign investment
The OIO reforms, which will be in effect from 6 March 2026, will require that an overseas investment in significant business assets, existing plantation forestry, and other types of sensitive land, meets a single consolidated "national interest test". Significant ministerial discretion is provided to enable interpretation of national interests with reference to prevailing policy and security concerns, aligning New Zealand's regime more closely with international counterparts such as Australia. Read more
1 January 2026 - Updates to the High Court Rules
The High Court Rules have seen significant amendments which are intended to encourage parties to refine issues earlier and provide more opportunities for disputes to be resolved. This, together with an improved Commercial List (which can be utilised in corporate insolvencies), should hopefully result in a more efficient resolution of disputes in an insolvency context which is timely as Parliament consults on changes to the directors' duties regime. Read more
Looking ahead
Geopolitics
Commentators suggest that the recent geopolitical tensions between USA and Iran (and others) are likely to have an impact on global oil prices and on costs more generally. Industries such as manufacturing, logistics and agriculture could all be impacted, as may that everyday life of New Zealanders. We expect restructuring activity to remain high whilst uncertainty persists. Read more
Private credit
Continued growth in 2025 has been pleasing to see, and an increasingly varied borrower type are drawn to the flexibility and pace at which private capital can be deployed. The impact of the ASIC review into the private credit industry in Australia, and any increased regulation, will be watched closely by those active in Australia and may result in increased supply into NZ in search for higher yields. Read more
Retail
We expect the distress that hit the retail sector in 2025 (see Mosaic Brands, Body Shop, Kitchen Things and Smith City) will continue into 2026 due to impact anticipated easing of interest rate reductions will have on already low levels of discretionary spending. Read more
Agriculture
Several significant names, Synlait, Alliance and Comvita, are all deploying different strategies to reduce debt under pressure from stakeholders. This trend may continue into 2026, with the notable exception of those in the dairy industry who supply Fonterra with its capital return due in 2026. Read more
Directors' duties
2026 is the year for public consultation on Parliament's review of the key directors' duties which are engaged when companies are at risk of insolvency. Read more
