Corporate rescue under insolvency act [chapter 6:07] : Progress but some puzzles.

Abstract

The new Insolvency Act (Chapter 24:03) replaced judicial management as a business rescue strategy with corporate rescue proceedings. For most of its existence, judicial management had been criticised on many grounds and had never been regarded as a successful corporate rescue scheme. The new corporate rescue proceedings seek to address the weaknesses which were inherent in judicial management. This study evaluates the new legal framework regulating corporate rescue proceedings in Zimbabwe. It seeks to ascertain whether the identified weaknesses of judicial management have been adequately addressed in the new corporate rescue proceedings. A comparative study with England is undertaken to establish whether the Zimbabwean framework is consistent with international best practices. In addition, weaknesses in the current procedures are identified with the aim of proffering recommendations designed to enhance the new procedures.