By Sandra Agyeiwaa OTOO
The Ghana Association of Restructuring and Insolvency Advisors (GARIA), now Chartered Institute of Restructuring and Insolvency Practitioners, Ghana (CIRIP), has launched the second edition of the Ghana Restructuring and Insolvency Journal, promoting innovative ideas in corporate restructuring and insolvency.
Speaking to B&FT, the President of the Ghana Association of Restructuring and Insolvency Advisors (GARIA), Felix Addo, mentioned: “Our insolvency practitioners have acquired lots of experiences over years; some have acquired experiences abroad.
The insolvency profession itself in Ghana is very young, and we are now trying to make sure that issues like administration turnaround and rescue are brought to the fore because we don’t want companies to go into liquidation when there could be turnaround; and you notice that in a way, its new here.”
According to Mr. Addo, the Corporate Insolvency Restructuring Act (CIRA) – which provides protection for creditors by ensuring their involvement in the restructuring process – is what permits his outfit to tackle administrations and rescue in Ghana.
Mr. Addo revealed that the journal launched is very critical as it carries comprehensive information covering various aspects of subject.
“There is a depth of knowledge base and this is where the thought leadership that the journal brings is so critical. We are now training ourselves given our peculiar dynamics in the Ghanaian economy to see how best we can turn and rescue companies around,” he mentioned.
“We need to share knowledge, we need to share experiences, cross-fertilise ideas, so that all of us will lift the state of play and then in the process make sure that the economy picks up and companies which are distressed can be salvaged,” he added.
According to Dr. Anthony Oteng-Gyasi, Chairman – Tropical Cable and Conductor Limited, the Ghana Restructuring and Insolvency Journal will help everyone involved in insolvency in Ghana to have knowledge about how to handle it.
“This journal is critical because the kind of articles and the kind of information in it will help legal practitioners, accountants, lawyers and everybody who is involved in insolvency in Ghana to understand the theory, the background and how to go about it – so its a critical journal,” he said.
Dr. Oteng-Gyasi indicated that “previously there was no law; but now with the passage of Act 117, there is a legal framework and a proper way of doing things so we don’t have to go through the common law or some other jurisdictions”.
He said due to the established framework, companies facing difficulties now have access to bankruptcy protections, similar to the US’s Chapter 11 provisions, a first of it kind for Ghana and a crucial development.
“It will give a chance for the companies to be restructured so that they don’t die out completely and it will prevent loss of jobs, loss of taxes, loss of employment; it is a chance to restructure them so that they get some protection and then come back and contribute to the economy,” he concluded.
