Dick Smith, bless it, went into receivership on January 4 and the following day tripped into voluntary administration. Across the ditch, it appeared to enter receivership and administration on the same day.
Pumpkin Patch, hitting the skids after a long slide, also went into receivership and administration on the same day. This appears to be a trend, and not just because McGrath Nicol was appointed as administrator on both occasions. More about it later.
To understand this trend lets take a step back. A receiver is appointed over a company by someone who has a general security over the entire entity, usually a bank. The debtor company borrows cash and agrees in advance that if it cant repay the money the bank can appoint external manag…
Read the full article at: https://www.nbr.co.nz/article/pumpkin-patch-exposes-holes-insolvency-law-195941