Kenya has put its insolvency legislation to the test in several cases where various companies, such as Sameer Africa, Mumias Sugar, Kenya Airways, Nakumatt, Karuturi, East Africa Cables, East Africa Portland Cement, Athi River Mining, and Britania Foods Limited, among others, have undergone the rigors of restructuring. Read More
Administration-Corporate Resuscitation
In our previous article, we discussed business turn arounds and the need to ensure that business rescue measures are taken quickly once the signs of corporate distress are evident. In this piece, we look at how administration can be used to grant companies breathing space to reorganize financial affairs. Administration, whether initiated in or out […]
Warning Signs of Financial Distress
Financial distress often arises because of a business having inadequate operating cash flow that impedes its ability to meet obligations. The business is likely to experience loss, breach agreements (to suppliers and consequently trading partners), encounter difficulty with shareholders and regulator requirements on compliance. Read More