Liquidation frenzy swamps High Court

Auckland’s High Court has had to schedule extra sessions to cope with the increasing number of companies going under.

The number of businesses being placed into liquidation is rising dramatically as the recession bites: last week in Auckland alone, more than 100 companies were called in court proceedings to be closed or placed into liquidation.

Some of these involve the closure of solvent companies, at the behest of directors.

But a much bigger proportion of the businesses are facing calls from creditors, often Inland Revenue, to be wound up.

Company failures can often have a knock-on effect where other businesses, which were relying on a payment from a company that has been placed into liquidation, end up sinking too.

Writer Bob Dey, whose website The Bob Dey Report monitors company liquidations, says the High Court at Auckland has scheduled extra sessions to cope with the increased traffic, including lists on both Wednesday and Thursday this week and Monday next week, and some afternoon lists.

Companies that were in court last week include recruitment firm Agility, which is in receivership, and Japanese Restaurant Holdings, which owns Umi Restaurant in Auckland’s Viaduct. It is now in receivership and liquidation.