IFLR 1000
The Guide to the World's Leading Financial Law Firms

CONTEXT AND TRENDS
Within the banking area firms have seen their work split between acquisition finance, projects work and occasional refinancing mandates. While straight lending is still to be found, corporates are increasingly looking at alternative sources of funding....

CONTEXT AND TRENDS

Within the banking area firms have seen their work split between acquisition finance, projects work and occasional refinancing mandates.

While straight lending is still to be found, corporates are increasingly looking at alternative sources of funding. Though most of the banks in the market originate from Australia or New Zealand itself and subsequently were not as badly hit by the economic crisis, they live in a world that was and are thus reluctant to take too many risks when it comes to choosing who to lend to. Several high profile collapses in recent years has also not created a steady environment for liquidity to flow through.

On the projects side, New Zealand is slowly adopting the PPP (public-private partnership) model and practitioners expect to see more such deals in the future. Several natural disasters in recent years have created a need for rebuilding in certain cities, while other infrastructure updates around the country, for instance to the rail system look likely to opt for a combined risk and finance model rather than putting the entire burden on the public purse.

MAJOR LATERAL HIRES

Simon Jensen
From: Westpac Banking Corporation
To: Buddle Findlay

Peter Ferguson
From: Simpson Grierson
To: Retired

RISING STARS

Chapman Tripp
Emma Sutcliffe

CONTEXT AND TRENDS
The continuing uncertainty in the capital markets and the seemingly fixed move towards the bond market looks likely to come to an end with the implementation of the Mixed Ownership Bill and the expected Trading Among Farmers (TAF) scheme being put into place by Fonterra in November The controversial legislation, which barely passed in June 2012 with a vote of 61 to 60, was strongly opposed by the political left. It allows for the partial sale of the four state owned energy companies, Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy, as well as reducing the state's 74% stake in Air New Zealand and is likely to significantly increase capitalisation on the New Zealand Stock Exchange The IPO for the shares of Mighty River Power is expected to take place in September 2012, depending on market conditions and expected to raise between NZ$1....

CONTEXT AND TRENDS

The continuing uncertainty in the capital markets and the seemingly fixed move towards the bond market looks likely to come to an end with the implementation of the Mixed Ownership Bill and the expected Trading Among Farmers (TAF) scheme being put into place by Fonterra in November

The controversial legislation, which barely passed in June 2012 with a vote of 61 to 60, was strongly opposed by the political left. It allows for the partial sale of the four state owned energy companies, Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy, as well as reducing the state's 74% stake in Air New Zealand and is likely to significantly increase capitalisation on the New Zealand Stock Exchange The IPO for the shares of Mighty River Power is expected to take place in September 2012, depending on market conditions and expected to raise between NZ$1.7 and 1.8 billion. The sale will reduce the government's ownership in Mighty River Power to 51%. The government is said to be considering a secondary listing on the Australian Stock Exchange.

Fonterra's TAF scheme is set to take place in November, after the delayed enactment of the Dairy Industry Restructuring Amendment Bill (DIRA) goes ahead. Fonterra's shareholders contested the TAF proposal, which allows outside investors to buy units in a fund that owns the rights to dividends from Fonterra and any gains or losses in the shares, but would not allow the owners any voting rights or influence the co-operative's milk prices. The complex TAF structure is said to ensure the outside investors no role in deciding the strategy or the structure of Fonterra, a great concern of the dairy farmers.

MAJOR LATERAL HIRES

Adam Jackson
From: Simpson Grierson
To: Buddle Findlay

Rodney Craig
From: Kensington Swan
To: Minter Ellison Rudd Watts

Robert Falvey
From: Minter Ellison Rudd Watts
To: Retired

MAJOR LEGISLATION CHANGES

Mixed Ownership Bill
Passed in June 2012

CONTEXT AND TRENDS
Most M&A and private work continues to be domestic, though there is an increasing number of foreign investors and corporates looking at opportunities in the country, most notably from China and Japan. Private equity has been on the increase in recent years partly driven by the need of the various houses and funds to make investments and, in many cases, the lack of sound investments in their home markets....

CONTEXT AND TRENDS

Most M&A and private work continues to be domestic, though there is an increasing number of foreign investors and corporates looking at opportunities in the country, most notably from China and Japan.

Private equity has been on the increase in recent years partly driven by the need of the various houses and funds to make investments and, in many cases, the lack of sound investments in their home markets. The likes of Blackstone and TPG have both been active in New Zealand of late.

Outbound investment remains rare and this state of affairs has not been helped in recent years with the collapse of several high-profile local financial entities that would have provided support.

One sector on the grow, particularly in terms of the mandates it creates, is that of the acquisition of loan and asset portfolios from banks and financial institutions. Driven by the wider financial crisis this could prove to be a lucrative source of work for firms.

CONTEXT AND TRENDS
A lot of the work in the New Zealand restructuring and insolvency market tends to be in the latter area. Insolvencies and receiverships are still commonplace in the country and most firms have experience of working alongside receivers and accountancy firms....

CONTEXT AND TRENDS

A lot of the work in the New Zealand restructuring and insolvency market tends to be in the latter area. Insolvencies and receiverships are still commonplace in the country and most firms have experience of working alongside receivers and accountancy firms.

The level of work over the last few years has certainly fluctuated, but a few individual collapses have caused ripples across the market, most notably those of South Canterbury and Bridgecorp Finance. Work related to these or in some cases caused by these continues to be seen and in such a compact market this is unsurprising.

Real estate and real estate finance continues to be one area which has thrown up a lot of mandates for firms and this looks likely to continue. Distressed sales of assets, often by foreign corporations looking to divest some of their smaller portfolio companies, is another area of activity.