MADAGASCAR Law and Practice Contributed by: Claudy Monja and Sarah Razafindrafito, John W Ffooks & Co
2.8.12 Aircraft Export Permits/Licences From a contractual point of view, the IDERA, DPOA and, eventually, any clause of the lease allowing the lessor to export the aircraft if an event of default occurs and is ongoing are the main conditions for an aircraft to be exported. The lease should provide a clause allowing the lessor, by serving notice, to require the lessee to deliver the aircraft to a specific location. The DPOA should expressly allow the lessor to require a qualified pilot to fly the aircraft to the specific location. From an administrative point of view, an export cer - tificate of airworthiness (ECA) is required. The ECA is issued by the CAA following an application made by the lessor, subject to a technical airworthiness assess - ment made by the CAA. It should be noted that it is not possible to obtain an ECA in advance because this is subject to the technical assessment of the CAA at the time of export. The CAA remains entitled to require any further docu - ments that it deems relevant (eg, a document evi - dencing that the aircraft was duly authorised by the customs authorities to enter and stay in Madagascar). The ECA is issued by the CAA within approximately ten to 20 working days from the application. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft The main fee is for receipt of the ECA, which is sub - ject to the payment of MGA1 million (approximately USD226) to MGA6 million (approximately USD1,358). 2.8.14 Practical Issues Related to Deregistration of Aircraft The main significant practical issue that an aircraft owner or mortgagee or lessor should be aware of in respect of the deregistration of an aircraft in Madagas - car is administrative delays, which are very common. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations Law No 2003-042 dated 3 September 2004, amended and supplemented by Law No 2007-018 dated 27 July 2007 (the “Insolvency Law”) governs insolvency pro -
ceedings in Madagascar. The Insolvency Law intro - duces three types of collective insolvency proceed - ings:
• preventative settlements; • judicial reorganisation; and • liquidation.
These are applicable to corporate insolvency pro - ceedings against a Malagasy company to the extent that it is duly incorporated and has its main interest in Madagascar. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership Preventative Settlement (Règlement Préventif) The preventative settlement ( règlement préventif ) is aimed at avoiding a debtor’s cessation of payment ( cessation de paiements ) or the cessation of its activ - ity, and allowing the clearing of its debts by way of an arrangement with creditors. In this proceeding, the company’s manager will petition the commercial court by stating the company’s economic and financial situ - ation and presenting proposals for the reorganisation of the company. If the court deems that the proposals are likely to lead to the company’s reorganisation, the president of the court will appoint a conciliator who will look for an arrangement between the debtor and its creditors. The arrangement will then be subject to the approval of the court president and will suspend any lawsuits that may have been initiated by creditors against the debtor for the payment of their debts. Judicial Reorganisation (Redressement Judiciaire) The judicial reorganisation ( redressement judiciaire ) is designed to save the debtor company and to clear its debts by way of a composition proposal ( offre de concordat ) with its creditors. If a debtor is unable to meet its current liabilities out of its disposable assets, it must file a declaration of cessation of payment at the commercial court within 30 days from its cessation of payment in order to initiate the collective proceed - ings for judicial reorganisation. It is also required to lodge a composition proposal at the court specifying the measures and conditions envisaged to redress the company within 15 days from the filing of the declara - tion. The court will then issue a judgment establishing
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