2nd Corporate Insolvency journal launched

The Ghana Association of Restructuring and Insolvency Advisors (GARIA) has launched the second edition of the Corporate Insolvency and Restructuring Journal (CIRJ) to enhance the framework of business rescue and insolvency in Ghana.

The comprehensive publication addresses critical aspects of Ghana's evolving insolvency landscape, offering valuable insights for practitioners and stakeholders while serving as a guide for board members navigating companies through financial distress and unexpected economic challenges.

Highlights 

Key highlights of this edition include an in-depth analysis of Post-Commencement Financing (PCF) and its vital role in business recovery. 

The journal also explores the complexities of insurance sector insolvency and provides a fresh tax perspective on the Companies Act 2019.

It examines the landmark Dream Reality Case, highlighting how judicial interpretation shapes Ghana's insolvency law development. 

The journal also introduces progressive discussions challenging traditional approaches, including a critique of the conventional waterfall method in liquidation proceedings and its impact on creditor fairness. 

Additionally, it addresses current gaps in legislation, particularly regarding cross-border mergers and acquisitions.

Speaking at the launch in Accra, GARIA President Felix Addo, acknowledged Ghana's previous shortage of insolvency expertise adding that there were ongoing efforts to prevent company collapses. 

"Our insolvency practitioners have acquired significant experience over the years, including international exposure. 
While the insolvency profession in Ghana is relatively young, we are prioritising administration turnaround and rescue to prevent unnecessary liquidations," he said.

Relevance

The Board Chair of Tropical Cable and Conductor Limited, Dr Anthony Oteng-Gyasi, emphasised the journal's importance for industry professionals.

He explained that the passage of Act 117 has established a comprehensive legal framework, eliminating the need to rely on common law or other jurisdictions. 

He said the new framework provides companies with bankruptcy protections similar to the US's Chapter 11 provisions—a first for Ghana.

"This framework allows companies to restructure rather than face complete closure, preventing job losses, preserving tax revenue, and maintaining employment. 

It provides protection for businesses to recover and continue contributing to the economy," he added.