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From Godwin Tsa, Abuja
The Federal High Court has established an Insolvency Unit to modernise and update insolvency practice and proceedings in the country.
The unit was created by the Chief Judge of the court, Hon. Justice John Terhemba Tsoho, as part of concerted efforts to ensure that the court meets the yearnings of all aspects of the laws in the country.
Insolvency refers to a financial state of distress in which a business lacks the cash to meet its financial obligations, such as utility bills, rent, supplier invoices, loan payments, credit card bills, and even employee wages.
Insolvency law provides a legal framework for dealing with the financial affairs of individuals and companies who are unable to pay their debts that have become due.
A statement by the Court’s Chief Registrar, Mr Sulaiman Amida Hassan, on Monday explained that the creation of the Unit was done pursuant to the provisions of the Companies and Allied Matters Act, 2020, the Assets Management Corporation of Nigeria (AMCON) Act, 2019 (as amended), the Nigeria Deposit Insurance Corporation (NDIC) Act, 2024, and the Bankruptcy Act, Laws of the Federation of Nigeria, 2010.
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He said that the functions of the Insolvency Unit are to oversee the effective implementation of the provisions of the enactments as they relate to Company Voluntary Arrangements (CVA), Administration, Receivership, Winding Up, and various forms of restructuring of companies.
According to the statement, the unit was established in line with global best practices on insolvency and to also provide specialised and standardised services on insolvency matters.
Among other things, the unit will also offer insolvency practitioners a dedicated channel for supervisory and enforcement services.
“This is a milestone in the quest for modernisation and updating insolvency practice and proceedings in Nigeria.
“The Unit will also offer fast-track services required in the implementation of its mandate,” the statement said.
