On this day of November 1, 2023, we mark a small but important milestone on our journey toward the development of an efficient business rescue economy – by launching the first national journal on corporate insolvency and restructuring.
Noting the insight shared by retired Supreme Court judge, Justice Date-Bah – in his inaugural Annual Public Lecture in honour of the late Kojo Bentsi-Enchill, this journey was started by the Ghana Association of Restructuring and Insolvency Advisors (GARIA) under the leadership of Felix Addo, then Senior Country Partner of PwC, and a group of like-minded professionals and business-persons.
These individuals understood that a more sophisticated resolution framework was required to support viable businesses in financial distress than that which had been in place for decades under the then Companies Code and the Official Liquidation Act, given the imperatives of our economic development and need to be in lockstep with good governance practices found internationally; in order to facilitate our integration with workings of the larger global economy.
The resolution framework eventually found expression in the new Companies Act and Corporate Insolvency and Restructuring Act – which itself is founded on UNCITRAL Principles (i.e., United Nations Commission on International Trade Law).
Now, to most men (and women) ‘Insolvency’ is unfortunately associated with notions of failure, and to the uninitiated or unenlightened it unfairly paints or presumes incompetence. This often leads to unjust or poor outcomes for businesses (including their customers and creditors), their managers and employees – such as business liquidation, job-losses, character-malignment or other negative effects. Incidentally, these outcomes are in the main no different from those that existed during the period of Joan of Arc in the Middle Ages before the period of the enlightenment, though perhaps not as gruesome. The main point is that they are often informed by ignorance.
Added to this mix, modern insolvency practice lacks clarity or is opaque to many. It is seen as different, complicated, fraught with risk and uncertainty; and often not readily understood by all stakeholders: whether they themselves be professionals charged with shepherding a business to health; creditors assessing viability and value implications of complex restructuring proposals; or policymakers evaluating reform options. In many ways, it may seem to be a dark art!
Journals however play a crucial role in dispelling myths, correcting misconceptions and promoting understanding. They serve as vital conduits for the exchange of knowledge, fostering progress, credibility and innovation in both academic and professional domains, and herein lies the value of the soon to be launched Corporate Insolvency Restructuring Journal to our nation – particularly financiers and investors; policymakers; arbitrators; and professional insolvency practitioners.
As a specialised area of law and finance focused on helping financially distressed companies manage their financial difficulties, insolvency practice involves various strategies and legal processes aimed at stabilising and revitalising troubled businesses – including business reviews; financial analysis; debt restructuring; turnaround management; asset sales; and creditor negotiations.
So, like turning points during the age of enlightenment, the Corporate Insolvency and Restructuring Journal’s aim is to dispel darkness by disseminating and sharing insolvency research findings, insights and practical knowledge: thereby supporting the advancement of practice; providing a forum for scholars and practitioners to exchange ideas and build upon existing research; offering stakeholders in various fields (bankers, lawyers, accountants, judiciary, business executives etc.) access to the latest industry trends, best practices and case studies; and to be a source of evidence-based insights policymakers can rely on.
The Maiden Edition covers a broad range of articles from practitioners and academics alike. It addresses both our local context and international experiences, and with its sights on a broad readership it largely eschews jargon – making it accessible to all. Do take the opportunity of GARIA WEEK to meet some of authors of the Maiden Edition at the Business Rescue Seminar (8 November) and the Corporate Debt Restructuring Workshop to be held on 8th and 9th November respectively; and get first-hand understanding of how distressed businesses can indeed be turned around to create win-win trade-offs for creditors and shareholders alike.
I must however add that not all businesses can be rescued. Nevertheless, in today’s environment many can – in the hands of the right professionals and with bona fide support of key stakeholders.
So, I therefore entreat you all to join us in celebrating this auspicious moment of our nation’s history with the Corporate Insolvency and Restructuring Journal launch – a national journal on insolvency – remembering the expression “…journals are the footprints of discoveries, the blueprints of progress, the engines of change…”. Today we commence GARIA WEEK 2023!
Thank you.
>>>the writer has a 30-year track record across a variety of economic sectors and geographies gained with Cohen Arnold & Company-United Kingdom, Price Waterhouse-Ghana, PwC-South Africa, IBM-South Africa and Akanani Group, South Africa. George is a Fellow of the Association of Chartered Certified Accountants (United Kingdom) and a Member of the Institute of Chartered Accountants (Ghana), with degrees from Henley Business School (United Kingdom) and Oxford University (United Kingdom). Trained as a chartered accountant, he has specialist expertise in transformative change in complex stakeholder environments. He currently serves as chief executive of GARIA.
