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New Zealand to introduce measures to help companies facing insolvency

Published 04/02/2020, 10:45 PM
Updated 04/02/2020, 10:50 PM
© Reuters. FILE PHOTO: Two people walk towards the entrance of the Reserve Bank of New Zealand located in the New Zealand capital city of Wellington

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.

© Reuters. FILE PHOTO: Two people walk towards the entrance of the Reserve Bank of New Zealand located in the New Zealand capital city of Wellington

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.

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