The recession has led to an increase in the number of insolvent entities. Insolvent Defendants are more and more common. The use of arbitration rather than litigation as a preferred means of dispute resolution has seen a remarkable increase in recent times. With this trend, many parties now find themselves contemplating claims (based on contracts with arbitration agreements) against insolvent entities or in dispute with a party who becomes insolvent.
“Insolvency” simply means the state of being insolvent; inability to pay one’s debts.
The Insolvency regime in Nigeria is governed primarily by the provisions of the Companies and Allied Matters Act Cap C20LFN 2004.
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