CÔTE D’IVOIRE Law and Practice Contributed by: Samirah Mogony and Mialy Solofohery, John W Ffooks & Co
2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership See 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisa- tions, Insolvencies and Liquidations . 2.9.3 Co-Ordination, Recognition or Relief in Connection With Overseas Proceedings The Recognition of Proceedings Opened Within the OHADA Area The Uniform Act on Insolvency is applicable for the recognition of foreign proceedings. It is understood that judgments opening and closing insolvency proceedings, as well as those that settle disputes arising from such proceedings in a member state (eg, Côte d’Ivoire), are recognised and enforce - able in the territory of the other member states. The Recognition of Decisions Pronounced Outside the OHADA Area Under the Uniform Act on Insolvency, a foreign repre - sentative may apply to the competent domestic court to recognise and oversee proceedings for which they have been appointed as a representative. As such, an application for recognition must be submitted with the following documents: • a certified copy of the decision to open the foreign collective proceeding and to appoint the foreign representative; and • a certificate from the foreign court attesting to the opening of the foreign collective proceeding and the appointment of the foreign representative. The application for recognition will also be accompa - nied by a statement identifying all foreign collective proceedings concerning the debtor that are known by the foreign representative. All documents provided in support of an application for recognition will have to be drafted in or translated into French.
2.9.4 Effect of Lessee’s Insolvency on a Deregistration Power of Attorney
The power of attorney remains valid until full comple - tion of the deregistration formalities. It is advisable that the power of attorney includes a provision in this regard. 2.9.5 Other Effects of a Lessee’s Insolvency In Côte d’Ivoire, the opening of insolvency proceed - ings against a lessee (ie, legal redress or liquidation of an asset) neither suspends nor terminates a lease agreement. However, the insolvency administrator or the syndic may always terminate it. The aircraft would not be deemed part of the lessee’s property as it is not owned by the lessee/insolvent. 2.9.6 Risks for a Lender if a Borrower, Guarantor or Security Provider Becomes Insolvent The main risks for a lender if a borrower providing security becomes insolvent would be the lack of suf - ficient assets to provide for the payments due to the lender, which, if the lender does not have a guarantee of its own, will be deemed a common creditor to be paid equally in accordance with the debtor’s existing assets. 2.9.7 Imposition of Moratoria in Connection With Insolvency Proceedings A moratorium (or similar stay) is not imposed in con - nection with insolvency proceedings. However, in the case of legal redress, the debtor must propose an arrangement with creditors. This arrangement usually imposes moratoria. 2.9.8 Liquidation of Domestic Lessees The procedure for legal redress or liquidation of an asset may be open to any debtor (ie, a domestic les - see) in the case of cessation of payment. Cessation of payments happens when the debtor is unable to meet its due obligations with its available assets (excluding situations where the credit reserves or payment periods enjoyed by the debtor from its creditors enable it to meet its due obligations). A debtor that is in cessation of payments will make a declaration at the relevant domestic court for the purpose of obtaining the opening of legal redress or
151 CHAMBERS.COM
Powered by FlippingBook