GARIA launches 2nd Corporate Insolvency Journal
This detailed publication explores pivotal issues within Ghana’s insolvency sector, offering crucial insights to practitioners and stakeholders.
The Ghana Association of Restructuring and Insolvency Advisors (GARIA) has introduced the second volume of the Corporate Insolvency and Restructuring Journal (CIRJ), aimed at strengthening Ghana’s framework for business recovery and insolvency.
This detailed publication explores pivotal issues within Ghana’s insolvency sector, offering crucial insights to practitioners and stakeholders. It also serves as a practical resource for board members guiding businesses through financial difficulties and unexpected economic shifts.
In this edition, the journal delves into topics such as Post-Commencement Financing (PCF) and its essential role in aiding business recovery. It further examines the challenges within the insurance industry in times of insolvency and provides an updated tax perspective under the Companies Act 2019.
The journal discusses the groundbreaking Dream Reality Case, showing how judicial rulings are shaping the evolution of Ghanaian insolvency laws. Additionally, it presents innovative perspectives that question conventional methods, including a critique of the traditional waterfall approach in liquidation, which affects creditor equity.
The journal also identifies legislative gaps, especially concerning cross-border mergers and acquisitions.
At the launch event in Accra, GARIA President Felix Addo recognized the historical lack of insolvency expertise in Ghana and noted ongoing efforts to reduce business closures.
“Our insolvency practitioners have gained valuable experience over time, including international exposure. Although the insolvency field in Ghana is relatively new, we are committed to prioritizing company rescue and turnaround to avoid unnecessary liquidations,” he stated.
Dr. Anthony Oteng-Gyasi, Board Chair of Tropical Cable and Conductor Limited, highlighted the journal’s significance for professionals in the field. He noted that with the passage of Act 117, Ghana now has a robust legal structure that eliminates the need to rely on external legal precedents.
This new framework, he explained, provides Ghanaian companies with protections similar to Chapter 11 in the United States, allowing restructuring over liquidation.
