actions against him are stayed,” said Justice Smith.
It allows the debtor to avoid going to court.
Smith said debtors “may come to the office and show us the details of their business. Once we are satisfied that they are insolvent, we will look now at the proposal, which is the scheme to deal with all the creditors with a view to rehabilitating the business.”
The new law makes it possible to rescue a business which is distressed but still viable.
“Under the old regime, this was not possible,” said the OSI head.
“The new focus is on rehabilitation. Formerly, under the Companies Act, the receiver would be appointed – at the creditor’s request – to pay debtors and dissolve the company,” he explained.
On review of individual ca…
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