The Relevance of a Sound Closing Business Framework in Developing Countries

Abstract

A sound framework for closing business is crucial for developing the economy. It breaks up nonviable businesses, saves viable businesses, and improves credit access. Many countries lack insolvency frameworks, ignore its usefulness, or disregard its applicability. Similarly, among many businesses, there is a lack of knowledge of the benefits of the insolvency regime. Latest developments of bankruptcy laws show that there are options other than mere liquidation of the business. Restructuring, ongoing concern sale, or piecemeal sale are some of the possibilities referenced in the chapter.