The Antigua and Barbuda government has provided an avenue for the sub-regional airline, LIAT, to seek Court protection rather than being forced into liquidation after it announced that the Companies (Amendment) Act 2020 was gazetted on Wednesday.
A statement issued after the weekly Cabinet meeting said that under the amended legislation “firms that find themselves in trouble may now apply to the Court for protection from their creditors, rather than be compelled to liquidate as was the only option available to owners and creditors before passage of the law”.
The amendments are similar to the United States’ Chapter 11 protection where companies are protected from creditors, for a prescribed time, as they restructure their debt.
Extract from the CARICOM BUSINESS Newsletter, Vol 3 No 29.
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