Insolvency Law at Ivory Coast
In Côte d'Ivoire (Ivory Coast), insolvency law is governed by the Uniform Act on the Organization of Collective Proceedings for the Wiping Off Debts (UAIL), adopted by the Organization for the Harmonization of Business Law in Africa (OHADA) on September 10, 2015, and effective from December 24, 2015. (Insolvency law – OHADA)
Key Features of Côte d'Ivoire's Insolvency Law
1. Preventive Procedures
Conciliation: Aimed at facilitating negotiations between the debtor and creditors to reach an amicable settlement.
Preventive Settlement: A court-supervised process where the debtor proposes a plan to settle debts, subject to creditor approval.
Simplified Preventive Settlement: Designed for small enterprises, this procedure offers a more streamlined approach to debt resolution.
2. Reorganization and Liquidation
Judicial Reorganization: Involves restructuring the debtor's business to restore its financial health.
Liquidation of Assets: If reorganization fails, the debtor's assets are liquidated to pay off creditors.
Simplified Procedures: For small businesses, simplified reorganization and liquidation procedures are available to reduce complexity and costs.
3. Judicial Oversight and Administration
Judicial Administrator: Appointed to oversee the insolvency process, ensuring fairness and compliance with the law.
Court Supervision: The commercial court supervises the insolvency proceedings, ensuring that the interests of all parties are considered. (Comparisons | Global Practice Guides | Chambers and Partners)
4. Personal Bankruptcy and Rehabilitation
Personal Bankruptcy: Individuals can be declared bankrupt and may be subject to rehabilitation procedures to discharge their debts.
Rehabilitation: A process allowing debtors to regain their financial standing after fulfilling certain conditions. (Insolvency law – OHADA)
5. Cross-Border Insolvency
International Recognition: OHADA member states recognize and cooperate on insolvency proceedings across borders, facilitating the resolution of international insolvency cases. (Comparisons | Global Practice Guides | Chambers and Partners)
Practical Implications
For Businesses: The law provides mechanisms for both restructuring and liquidation, offering flexibility depending on the company's situation.
For Creditors: Ensures a structured process for debt recovery, with clear priorities and procedures.
For Legal Professionals: Requires familiarity with OHADA's uniform acts and the specific procedures outlined in the UAIL. (Insolvency law – OHADA)
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