‘Not Too Big to Fail’? - Towards a Corporate Rescue Culture in Sierra Leone: A Comparative Analysis
20 Pages Posted: 24 Dec 2014 Last revised: 3 Mar 2017
Date Written: December 23, 2014
In 2014, Sierra Leone suffered the twin shocks of an Ebola viral outbreak and an economic meltdown due to the drastic drop in the price of iron ore, its main export. The shocks occasioned a cross-border administration of the parents of its two biggest mining companies (African Minerals Limited and London Mining Company Limited) and liquidation of other corporate entities. In light of these events, this article examines the corporate insolvency framework in Sierra Leone and its receptiveness to corporate rescue and bailout. This is done with comparative perspectives from England and the United States, given their pro-rescue approaches to corporate insolvency. The paper provides an overview of corporate insolvency law in Sierra Leone and identifies possible remedial tools for either a business rescue or other alternatives for creditors’ satisfaction. The objective is to present a new perspective to corporate indebtedness and rescue in a country where hitherto companies have not been considered to be indispensable or ‘too big to fail’. It asserts that enhancing a corporate rescue culture will present further opportunities for business viability and economic growth.
Keywords: Bailout, Bankruptcy, Insolvency, Rescue, Reorganization, Sierra Leone
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