BRIPAN has partnered with the Federal High Court to address insolvency issues. The collaboration aims to revive failing businesses.
Chief Judge John Tsoho welcomed BRIPAN members during a meeting in Abuja. He announced the creation of a new insolvency unit. The unit will implement international best practices.
The partnership focuses on managing company insolvency and preventing rapid asset seizures. BRIPAN praises the court’s proactive step. “We welcome this move, as it strengthens our insolvency framework,” said President Chimezie Ihekweazu, SAN.
The court and BRIPAN will work together on legal remedies for companies in distress. The insolvency unit will oversee Company Voluntary Arrangements, administration, receivership, and winding up cases. It will offer fast-track services to resolve cases quickly.
BRIPAN members stressed that insolvency is a key issue affecting Nigeria’s economy. They noted that proper insolvency management prevents job losses and economic crises. “We must manage troubled companies to keep them viable,” the association stated.
The unit will also supervise and enforce insolvency practices under the Company and Allied Matters Act. BRIPAN hopes this will improve outcomes for debtors and creditors. They believe that maintaining business operations can mitigate severe economic impacts.
The partnership comes amid growing concerns over the collapse of businesses due to poor insolvency procedures. BRIPAN and the court have pledged to support a robust legal framework. They aim to prevent the loss of jobs and safeguard economic stability.
Both parties call on stakeholders to support the new insolvency unit. They emphasize that this initiative will create a sustainable recovery path for troubled companies in Nigeria. The initiative also aligns with ongoing reforms in the business and legal sectors.
The collaboration between BRIPAN and the Federal High Court marks a significant step toward a more effective insolvency regime in Nigeria. Legal experts and business leaders remain hopeful that these measures will bring positive change to Nigeria’s financial landscape.
