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Insolvency

Insolvency

A simple scenario of Insolvency is the stage a company or a legal entity reaches when its liabilities (secured or otherwise) exceed by far its realisable value of its assets and it is no longer able to repay its debts as they fall due in the normal course of business and / or is in default of payments of its secured debts and lenders are seriously considering recalling banking or other facilities advanced to the company.

Insolvency, in today’s complex world of affairs, is often perceived as a necessary evil and often an Insolvency Practitioner is perceived as the Butcher with a veil on his eyes an axe in his hand executing his prey! This is a narrow view of Insolvency and we definitely do not practice nor promote such a culture of fear and gloom at our firm.

We have been assisting companies, directors, shareholders over the years in finding the best solutions, in collaboration with stakeholders, viz. banking and non-banking financial institutions, Mauritius Revenue Authority, Financial Services Commission, Ministry of Labour, Unions and other stake-holders, to smoothly and fairly conduct our assignments.

The Director of Insolvency has been of great assistance in enabling us to deal in a timely manner as Insolvency assignments often requires timely and structured way of proceedings and without this support it is difficult for an Insolvency Practitioner to proceed in a normal way.

We also are appointed by Court for conducting winding up and out Legal System is governed by principles drawn from both the French Napoleonic Code and English Common Law. The Supreme Court is the highest judicial authority in Mauritius.

An Insolvency Practitioner operates within the parameters set by the Insolvency Act and the Companies Act (Mauritius) combined with any Court Orders issued to him. The Insolvency Practitioner is a professional body in itself and has a duty of care not only for the party which has appointed him but also the other stakeholders.

The most common type of Insolvency is Members’ Voluntary winding-up, Creditors’ winding-up, Administration and you can also have winding-up by Court Orders and Receiverships.