SENEGAL Law and Practice Contributed by: Claudy Monja and Mampionona Razafimamonjy, John W Ffooks & Co
• Regulation No 01/2007/CM/UEMOA, adopting the WAEMU Civil Aviation Code; • Law No 63-62 of 10 July 1963 on the General Code of Obligations (General Theory of Obligations); • Law No 2012-02 of 3 January 2012 on Leasing (the reference law on local leasing); and • Law No 2015-10 on the Civil Aviation Code. Crédit bail is subject to the prior approval of the ANACIM and must be registered in the trade and credit register. The rights and obligations of the par - ties (the lessor and the lessee) are generally defined in the lease agreement, and particularly by the regula - tions in force. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership The relevant rules or laws applicable to the types of voluntary and involuntary restructurings, reorganisa - tions, insolvencies and receivership relating to a les - see domiciled in Senegal are protective seizures (i) by an administrative authority (ANACIM) in the case of violation of the regulations of civil aviation; or (ii) by a judge, following a petition filed by a private indi - vidual to claim rights against the tenant (eg, debts) and insolvency proceedings (the lessee as a company may be subject in the case of financial difficulties to a judgment of judicial reorganisation or liquidation if the lessee is completely bankrupt). The bankruptcy of the lessee will lead to the withdrawal of its approval. The decision to restructure or reorganise belongs to the partners of the lessee’s company, as this is an internal management decision of the company. 2.9.3 Co-Ordination, Recognition or Relief in Connection With Overseas Proceedings As indicated in 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations , the OHADA Uniform Act on insolvency proceedings (the “Uniform Act on Insolvency”) regulates all mat - ters relating to insolvency law in all OHADA member states. Its purpose is: • to organise pre-insolvency procedures of concili - ation, preventative settlement and rehabilitative proceedings of reorganisation and asset liquida -
tion so as to preserve the economic activities and employment of debtor companies, quickly reha - bilitate healthy companies and liquidate distressed ones in such a way that the debtors’ assets will be maximised for the purpose of increasing receiva - bles to be recovered by creditors, and establish a specific order of payment to secured or unsecured collateral securities; • to define the rules applicable to judicial administra - tors; and • to set proprietary and professional sanctions as well as criminal proceedings related to the default of the debtor, applicable to the debtor company’s top executives and individuals involved in the insol - vency proceedings management. Nevertheless, if the international leasing agreement so provides or the liquidator deems it relevant, the liquidator may apply all the good practices applicable in this matter, in particular from adopting co-ordination principles (most notably, the American Law Institute and International Insolvency Institute Guidelines Appli - cable to Court-to-Court Communications in Cross- Border Cases 2001, and the INSOL International (International Association of Restructuring, Insolvency and Bankruptcy Professionals) Global Principles for Multi-Creditor Workouts 2000), and implement the UNCITRAL Model Law on Cross-Border Insolvency or any other relevant international principles or rules. 2.9.4 Effect of Lessee’s Insolvency on a Deregistration Power of Attorney Irrevocable powers of attorney regarding the assets that make up the estate of the insolvent party will not survive its insolvency. However, taking into account that the aircraft is not owned by the lessee/insolvent, the aircraft is not part of the insolvency estate, and for that reason the DPOA will survive. If the amounts regarding the lease are not paid, the lessor may invoke an event of default to terminate the agreement, requesting the repossession and deregistration of the aircraft through a DPOA. 2.9.5 Other Effects of a Lessee’s Insolvency In Senegal, the declaration of the insolvency of a les - see does not automatically suspend a lease agree - ment. Under Article 14 of Regulation No 07/2002/CM/ WAEMU relating to the licensing of air carriers within
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