World News

New Zealand to introduce measures to help companies facing insolvency

WELLINGTON (Reuters) – New Zealand said on Friday that it would introduce new legislation to help companies facing insolvency due to the coronavirus pandemic to remain viable and keep people employed.

The new legislation gives directors of companies facing significant liquidity problems a “safe harbour” from insolvency under the Companies Act, Finance Minister Grant Robertson said in a news conference.

The rules will also enable businesses affected by the pandemic to place existing debts into hibernation until they are able to start trading normally again, he said.

(Reporting by Praveen Menon; Editing y Shri Navaratnam)