Summary
- The High Court in 2001 ordered Mr Macharia to repay the debt with an annual interest of 19 per cent that is compounded monthly from December 1986 following the botched land deal.
- Mr Macharia ignored the ruling until 2008 when Mr Waithaka served him with bankruptcy notices.
- The High Court judges said the debtors failed to settle the amount despite bankruptcy notices having been issued to them.
- At the Court of Appeal, the judges ruled that Mr Macharia and his wife challenged the court ruling on the existence of the debt instead of the bankruptcy suit.
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Read the full article at: https://www.businessdailyafrica.com/bd/economy/state-moves-to-seize-sk-macharia-assets-in-bankruptcy-order-2457114
2020 has seen tens of thousands of jobs and companies on the brink of collapse. In response to a wave of insolvencies expected at the end of the year, the Federal Government has announced a new set of insolvency laws to help small businesses either restructure or fold.
2020 has seen tens of thousands of jobs and companies on the brink of collapse. In response to a wave of insolvencies expected at the end of the year, the Federal Government has announced a new set of insolvency laws to help small businesses either restructure or fold. These reforms are reported as the most significant insolvency law reform in almost 30 years.
The proposed changes will see the introduction of a two-tiered system, where larger companies will remain subjec…
Read the full article at: https://www.businessnews.com.au/article/New-restructuring-reforms-to-ease-economic-pressure-on-small-businesses
Fears of a debt tsunami are amplifying with debt relief measures by the Bank of Thailand set to expire later this month. Suffering businesses are urging an extension to avoid shouldering a mountain of debt that could make them go under.
Non-performing loans (NPLs) in consumer finance are edging up amid the economic downturn aggravated by the coronavirus pandemic.
Gross outstanding NPLs in the second quarter totalled 509 billion baht, equal to 3.09% of total loans, up from 3.04% in the previous quarter.
In an attempt to help struggling businesses and retail borrowers, the central bank laid …
Read the full article at: https://www.bangkokpost.com/business/1996635/living-on-borrowed-time
BERLIN (Reuters) – The COVID-19 pandemic could trigger a debt crisis in some countries, so investors must be ready for granting some form of relief that could also include debt cancellation, World Bank President David Malpass was quoted as saying on Sunday.
It is evident that some countries are unable to repay the debt they have taken on. We must therefore also reduce the debt level. This can be called debt relief or cancellation, Malpass t…
Read the full article at: https://www.reuters.com/article/health-coronavirus-worldbank-debt/debt-cancellation-needed-to-help-poorest-countries-world-bank-president-idUSL8N2GV0W2
Liquidator Nicholas Crouch, who advised the small business ombudsmans insolvency review earlier this year, likens it to doing a 10-year apprenticeship.
You must have the smartest mind on the job for the strategic plan otherwise mistakes happen and those mistakes are borne by the mums and dads in this environment, the small business owner, he said.
Letting just anyone put their hand up would just be catastrophic.
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The government also suggests an influx of these new practitioners will be needed to meet demand – something the sector says just isnt the case.
Head of the Association of Independent Insolvency Practitioners Stephen Hathway said after eight months of coronavirus restrictions, there would be many businesses that could…
Read the full article at: https://www.brisbanetimes.com.au/politics/federal/fears-new-insolvency-rules-could-be-open-slather-for-dodgy-advisers-20201002-p561g7.html
DUBAI : AE construction giant that built the world’s tallest building the Burj Khalifa, Arabtec formally announced that it was going into liquidation after stakeholders found the financial situation “untenable”.
“In recent years, limited liquidity in the construction sector impacted the progress of Arabtec’s projects and this has been exacerbated by the effects of COVID-19,” said Waleed Al Mokarrab Al Muhairi, Chairman, as reported by Gulf News.
“Despite efforts to pursue legal and commercial entitlements and a restructuring of the company’s finances and operations, the situation in which Arabtec finds itself today is untenable,” he added.
According to Gulf News, the announcement comes after “weeks of intense speculation” over the…
Read the full article at: https://www.livemint.com/news/world/burj-khalifa-builder-arabtec-confirms-liquidation-11601794210538.html
Zambia is running out of money to pay its debts. It has asked bondholders for breathing space so that it can put a restructuring plan in place. The copper-rich African state is at risk of being the first country to default on its debts since the start of the coronavirus pandemic.
Not the last though. Zambia is the canary in the coalmine, a harbinger of a full-blown crisis that has been lurking in the background from the moment the seriousness of Covid-19 became apparent.
All the ingredients were in place for trouble. A lot of countries, Zambia included, had behaved recklessly in the good times. As the managing director of the International Monetary Fund, Kristalina Georgieva, pointed out last week, they went into the crisis with levels …
Read the full article at: https://www.theguardian.com/business/2020/oct/04/creditors-must-wake-up-fast-to-threat-of-emerging-market-debt-crisis
Shareholders of United Arab Emirates-based Arabtec Holding, which helped build the worlds tallest skyscraper, voted to dissolve the debt-laden firm in a move likely to threaten thousands of jobs and scores of suppliers and sub-contractors in the Gulf region.
Construction companies that sprang up more than a decade ago as a building bonanza swept Dubai and much of the Gulf are facing a reckoning as governments pull back on spending.
Arabtecs board will have a maximum of two months to allow for discussions with the main stakeholders before a liquidation application may be submitted to the competent courts, the company said in an e-mailed statement.
The impact on jobs would be substantial since the company has about 40,000 employees, Jaap…
Read the full article at: https://gulfbusiness.com/burj-khalifa-builder-arabtec-set-to-fall-into-liquidation/
Express News Service
SHIVAMOGGA: TheCovid pandemic has hit the Charaka Womens Multipurpose Industrial Cooperative Society, forcing it to declare insolvency as it could not repay the debt. Founded by social activist Prasanna Heggodu in 1994, the Society at Bheemanakone in Sagar taluk of Shivamogga district was empowering around 800 handloom weavers, natural dye manufacturers and hundreds of women financially.
Charaka had opened its marketing arm Desi f ive years after its inception. While Charaka makes fabrics, Desi sells readymade garments. It has 13 shops, including five in Bengaluru and the remaining in Shivamogga and Uttara Kannada districts.
Our society was profitable for many years. We recorded a small profit this year too. Arou…
Read the full article at: https://www.newindianexpress.com/states/karnataka/2020/oct/04/covid-effect-charaka-now-insolvent-2205579.html