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Bahamas: Bankruptcy reform “priority” for economic recovery

NASSAU, BAHAMAS — The Economic Recovery Committee (ERC) has recommended that the government reform the country’s “antiquated” bankruptcy laws, noting that this should be treated as a “priority” for economic recovery.

In its executive summary released yesterday, the ERC noted that the country’s laws governing the financial affairs of an individual who has become insolvent, called the bankruptcy laws, are “antiquated, near punitive, and non-rehabilitative, in that they do not help in the financial recovery of the insolvent individual”.

“While the laws governing the financial affairs of an insolvent company are, in most respects, a modern liquidation and dissolution regime, they are incomplete as they do not go as far as to provide a rehabilitative component towards the financial rescue and recovery of a company to allow for restoration as a financially viable entity,” the ERC noted.

The report furthered that while the deficiencies in the country’s insolvency regime have resulted in “prolonged personal hardship for insolvent individuals, and the loss of insolvent enterprises which may otherwise be able to recover and contribute to the well being of society and the economy”.

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