Judicial management is designed to provide a breathing space from creditor action whilst Licensed Insolvency Practitioners acting as Judicial Manager take control of management and evaluate the company and the best course of action to take for all stakeholders, following established procedures and requirement set out by Companies Act. We will prepare necessary paperwork to place the company under Judicial Management.

In essence, Judicial Management seek to either provide time for a business to restructure and become profitable, be sold and revived or wind up and liquidated.

The directors of the company may make a proposal to the company and to the creditors for Corporate Voluntary Arrangement if directors believe that their company has a variable business which can return to profitability.

Insolvency practitioners role basically in the financial aspect on how to make the scheme a viable proposal which involved negotiation with creditors, a review of operation and financial reorganization, restructure and preparation of paperwork to get creditors approval with 75% majority.

It is normal for the banks or lenders to have a provision in the loan agreement for the appointment of receivers and managers in the event the borrower have defaulted and loan in jeopardy.

This is a court driven process whereby licensed insolvency practitioners nominated by banks or lenders take over the assets pledged and dispose them to pay off the debts.