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When debtor companies don't pay

The procedure offered in the Companies Act 1993 when a debtor company unable is to pay its debt, is issuing a statutory demand.1

A statutory demand when served on a company in writing, gives it 15 working days to respond. The debtor company can apply to the court to set aside an statutory demand issued to it.2 The court, if it finds no reason to set aside a statutory demand, can order the debtor company to pay or make an order to place the company in liquidation. 3

1. https://www.legislation.govt.nz/act/public/1993/0105/latest/DLM321970.html

2. https://www.legislation.govt.nz/act/public/1993/0105/latest/DLM321971.html

3. https://www.legislation.govt.nz/act/public/1993/0105/latest/DLM321973.html