When insolvency is inevitable, it is important for there to be a solution that minimises losses, protects creditors and develops a rescue strategy where the business is viable.
The newly enacted Insolvency Act, 2015 provides an alternative to liquidation procedures that enables the affairs of the insolvent company to be administered for its benefit as well as the benefit of its creditors.
The administration of a company under the Kenyan Insolvency Act seeks to maintain the company as a going concern to achieve a better outcome for the company’s creditors as a whole than would likely be the case if the company were to be liquidated.
By virtue of our membership in the global DLA Piper Group, we have a strong international platform from which we can provide integrated advice on all aspects of business rescue, insolvency and restructuring.
The practice areas which support this sector are:
- Bank Securities and Finance
- Commercial and Corporate law
- Dispute Resolution
- Mergers and Acquisitions
- Advised a leading bank in Kenya in the negotiations and amicable settlement of a matter in which the bank was seeking to recover US$100 million from a group of schools and chain of hotels in Kenya that were under receivership.
- Advised on a receivership of a large horticulture company in Kenya. The matter included advising our client on the process of debt restructuring and preparing a Deed of Settlement.
- Advised a leading Kenyan bank in a dispute resolution matter where a company had challenged the bank’s right to appoint receivers over the company as well as the bank’s rights to exercise its statutory power of sale in a bid to recover a debt in excess of Kshs.643 million (US$7.7 million).
- Advised minority shareholders in arbitration proceedings against the company for the fair valuation of their shares following oppressive conduct on the part of the company.
- Advised the shareholders/directors of a company in a winding up case as a result of impropriety on the part of some of the directors who were holding office contrary to the Memorandum and Articles of Association.
- Advised in a due diligence and restructuring exercise for a group of eight companies in various sectors, including agriculture, insurance, real estate and motor vehicle franchising.
- Advised in the reorganisation of a leading group of companies with interests in farming, real estate and hotels.