By S V Venkataraman
Friday 6th October 2000
|Text too small?|
Bruce McCallum, managing partner of McCallum Petterson and president of the New Zealand chapter of Turnaround Management Association (TMA), said while Australia included such a provision when amending its corporation law, there had been no such move here.
"We don't even have a standstill [moratorium] provision in our turnaround toolkit," he said. "Our regime could be epitomised as one comprising extensive management incompetence, credit irrationality and a legislative framework which is creditor driven and focused on liquidation of assets."
Mr McCallum was speaking during the TMA's inaugural conference, in Auckland this week, which featured a number of international speakers.
"Our banking environment is rightly focused on debt recovery rather than business resuscitation. But there is growing awareness of turnaround management as an effective solution to salvage businesses."
One of the obstacles was the inefficient venture capital market and the absence of a secondary market for commercial debt. This meant companies requiring an injection of capital during restructuring found it difficult to locate suitable investors.
"TMA New Zealand is committed to actively promoting the establishment of a more efficient capital market. This could include an electronic venture capital market which is currency being investigated based on the successful Swedish model," he said.
Melanie Cohen, a partner at Chicago-based Altheimer & Gray, said recovery had become a well accepted concept in US and the TMA was recognised as an important platform to bring together professionals in the process.
No comments yet
NZ dollar falls against Aussie after jobs data there
Sky CEO put on notice by chunky vote against salary share scheme
Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments