MAURITIUS Law and Practice Contributed by: Gilles Athaw, Jason Barbe, Deeviya Rughooputh and Sushika Ramlugun, Bowmans
The aim of a voluntary administration is to enable a business, property and affairs of a company to be administered in a way (i) to provide an opportunity for the company and its business to continue to exist or, should the former scenario not be possible, (ii) to pro- vide a better return for the company’s creditors and shareholders, compared to an immediate winding-up of the company. The administrator may be appointed by the compa- ny in administration, by a secured creditor holding a charge over the whole/substantially the whole of the company’s property or a buy-order of the court. The Mauritius Companies Act 2001 further provides other mechanisms for company rescue, which include: • a compromise between the company and its credi- tors; • amalgamation procedures; and • a scheme of arrangement by a creditor or a share- holder in relation to the company. 7.5 Risk Areas for Lenders Potential risk areas which the lender may face, upon a borrower, security provider or guarantor becoming insolvent, are as follows. Voidable Preference A voidable preference is a transaction which involves creating a charge over the debtor’s property and incurring an obligation, and which (i) has been entered into by the company as a debtor at a time when the company is unable to pay its due debts and which (ii) enables another person to receive more towards satisfaction of a debt by the company than that per- son would receive in the bankruptcy or liquidation. A voidable preference, which was made within two years immediately before adjudication or commence- ment of the winding-up, may be set aside by the court upon application by an official receiver or a liquidator making such an application. Voidable Charge A charge over a property or undertaking of a debtor, given within two years before the debtor’s adjudica- tion or the commencement of the winding-up and where, immediately after the charge was given, the
debtor was unable to pay its due debts, may be set aside by the court upon the application by an official receiver or a liquidator.
8. Project Finance 8.1 Recent Project Finance Activity Energy
The government’s push for cleaner energy sources and the need to update or expand energy infrastruc- ture has driven considerable investment in these projects. The main projects involve medium-sized to large-scale solar farms and wind farms. Through the Finance Act 2025, the government has introduced the “Waste to Wealth Investment Scheme” to promote creative waste-to-art projects, waste-to-compost, waste-to-energy and re-use of metal scrap, amongst others. More specifics on this initiative are to be set out through a guideline under the Economic Develop- ment Board Act. Infrastructure Large-scale infrastructure projects like roads, bridges and public transportation with the latest light railway system have been the main projects in this category. Real Estate Development Large real estate development projects, such as smart cities involving commercial complexes, residential communities, and tourism are driving projects in this specific sector. 8.2 Public-Private Partnership Transactions The Mauritian government has promulgated the Pub- lic-Private Partnership Act 2004, which came into force on 1 March 2005 (the “PPP Act”). The PPP Act provides for the implementation of PPP agreements between contracting authorities and pri- vate parties and establishes a set of rules governing public-private procurement. Over the years, the main PPP projects have involved the energy sector, with the setting up of various power plants using fossil fuel and renewable sources, the development of the freeport zone and airport terminal,
387 CHAMBERS.COM
Powered by FlippingBook