Bankruptcy and Liquidation
Since the entering into force of the 1998 OHADA Uniform Act on the Organization of the Collective Procedure of Auditing Liabilities, we talk less and less of the old law of bankruptcy and more and more of the modern law of “enterprises in difficulty”. The old approach had a rather repressive character with a lot of emphasis put on the creditors of the enterprise. The objective of this modern approach is to:
- Prevent difficulties;
- Rehabilitate enterprises capable of being rescued;
- Tearfully and reluctantly liquidate those enterprises which are irretrievably going bust; and
- Punish those responsible for bankruptcy.
The Uniform Act is therefore more geared toward the rehabilitation of enterprises having symptoms of difficulties. To this end the firm has tried and tested experts who advise corporate clients on, extra-judicial solutions to corporate difficulties, the early discovery of such difficulties, the prevention of difficulties in a pro-active spirit, the treatment of corporate difficulties, the judicial solution to difficulties (the collective procedure and conditions thereof), the fate of shareholders, the operation of putting the enterprises back on rails in a veritable procedure of rehabilitation or, judicial liquidation as a last resort.