Namibia: Insolvency Bill Should Also Cater for Cross-Border Insolvency

Minister of Justice Sacky Shanghala says there is a need for the Law Reform and Development Commission (LRDC) to also include cross-border insolvency when formalising the Insolvency Bill that will eventually replace the Insolvency Act of 1936, reported. Cross-border insolvency, also referred to as international insolvency, regulates the treatment of financially distressed debtors when they have assets or creditors in more than one country. Shanghala, who was addressing the commission earlier this week in Swakopmund, said that foreign-owned and run companies such as Foschini, Standard Bank and Woolworths are all business that operate cross-border. Hence he says it would only be fair to address cross-border insolvency as it will be of immense help for local creditors in debt recovery. He says one should wonder what would happen if one of these entities can no longer pay their debts as the current act limits the seizure or liquidation process for such property within the country. Read more