Liberia: Cllr. Barbu Wants Timely Passage of Insolvency Law

The Chairman of the Law Reform Commission (LRC), Cllr. Jallah Barbu, has recommended to members of the National Legislature to consider the passage of the proposed Insolvency Law, allAfrica reported on an Inquirer story. Giving background of the Insolvency Law at a Legislative Hearing on the Proposed Insolvency Law held at a local hotel on Wednesday, Cllr. Barbu said the key benefit of the law is that it provides detail legal procedures by which businesses having financial trouble and/or that have become insolvent may still manage to rebound. Cllr. Barbu noted that for the first time, the law will give Liberian businesses the opportunity to enjoy relief from creditors in a more formal and structured way that is comparable to Chapter 7 and/or Chapter 11 protections business enjoy in the United States. "The central feature of these protections and all insolvency laws (including this bill) is the establishment, recognition and adherence to a systematic process of deciding whether a business is broke partially or completely, and if so, whether it can be revived if its creditors are told to defer for a given period the collection of all debts owed them by the so-called broke business," the Law Reform Commission boss said. Read more.