Best Restructuring & Insolvency Lawyers in Mauritania

About Restructuring & Insolvency Law in Mauritania

Restructuring and insolvency law in Mauritania forms an essential part of the country's commercial legal framework. These laws set the processes and rules for businesses or individuals who are unable to meet their financial obligations. The goal of restructuring is often to enable financially distressed companies to continue operating, usually by reorganizing debts and obligations. Insolvency, on the other hand, defines the legal state in which a debtor cannot pay outstanding debts, triggering formal procedures such as liquidation or judicial administration. Mauritania is a member of OHADA, a regional organization harmonizing business law across West and Central Africa, which means its insolvency laws are based on OHADA Uniform Acts. As such, restructuring and insolvency processes in Mauritania must comply with regional standards as well as local requirements.

Why You May Need a Lawyer

There are several situations where professional legal assistance is crucial in matters of restructuring and insolvency in Mauritania:

• If your company is struggling to repay debts and you need advice on debt restructuring or negotiation with creditors.
• When you are considering filing for insolvency or are facing insolvency proceedings initiated by others.
• If you are a creditor seeking to recover debts from an insolvent company or individual.
• When you need to understand your rights and obligations under OHADA and local Mauritanian law before entering into restructuring negotiations.
• If you are a foreign investor or business partner of a Mauritanian entity facing financial distress.
• To ensure full compliance with notification, reporting, and court procedure requirements.
• If you suspect fraudulent activity during insolvency proceedings.

In any of these scenarios, having a legal specialist ensures your interests are represented and that the applicable laws are properly followed.

Local Laws Overview

Mauritania’s restructuring and insolvency regime is mainly governed by OHADA’s Uniform Act on the Organization of Collective Procedures for Debt Clearance. This Act sets forth three major procedures:

• Preventive Settlements (Règlement Préventif): Intended for companies in financial difficulty but not yet insolvent, allowing them to negotiate with creditors to avoid formal insolvency.
• Judicial Reorganization (Redressement Judiciaire): Allows for reorganization under court supervision, affording the business a chance to continue trading while implementing a recovery plan.
• Judicial Liquidation (Liquidation Judiciaire): If recovery is not feasible, this process leads to the sale of assets and distribution of proceeds to creditors.

The Commercial Court in Mauritania is typically the competent authority to oversee insolvency procedures. The law also provides for the appointment of a court trustee (commissaire or syndic) to manage the process. Both creditors and debtors have specific rights and obligations, with set timelines for submitting claims, attending meetings, and voting on any proposed restructuring plan. Directors and managers of insolvent entities may also face liability for wrongful trading, and creditors’ rights may include preferences depending on the nature of their claim.

Frequently Asked Questions

What is insolvency according to Mauritanian law?

Insolvency is when an individual or company is unable to pay its debts as they become due. Mauritania, under OHADA law, considers insolvency on the basis of the cash-flow test - if a debtor can no longer meet debts as they are due, they may be declared insolvent.

What are the main types of insolvency procedures in Mauritania?

There are three main procedures: preventive settlement (for early intervention), judicial reorganization (for restructuring under court supervision), and judicial liquidation (involving dissolution and sale of assets).

Who can initiate insolvency proceedings?

Either the debtor themselves or a creditor may apply for insolvency proceedings before the competent Commercial Court.

How are creditors treated in Mauritanian insolvency proceedings?

Creditors are required to file their claims with the appointed administrator and may participate in creditors’ meetings. Some creditors have preferred status, such as employees or tax authorities.

What is the role of the court-appointed administrator?

An administrator manages the debtor’s assets, examines the claims submitted by creditors, and works with the court to guide the outcome of the insolvency process.

Can a company continue to operate during insolvency proceedings?

Yes, during some stages such as judicial reorganization, a company can continue to run under supervision, with the aim of restoring viability.

Are directors or shareholders liable for debts after insolvency?

Directors and managers can be personally liable if they are found guilty of wrongful trading, fraud, or mismanagement leading to insolvency.

Is it possible to restructure a company's debts in Mauritania?

Yes, debt restructuring is possible especially during the preventive settlement or judicial reorganization stage, typically through a court-approved plan agreed with creditors.

How long do insolvency proceedings usually take?

Timeframes can vary depending on the complexity of the case, but preventive settlements and reorganizations often aim for resolution within several months, while liquidations may take longer.

Can foreign creditors participate in Mauritanian insolvency proceedings?

Yes, foreign creditors have the same standing as local creditors and can submit their claims in accordance with the rules set under OHADA law.

Additional Resources

If you need more support or information about restructuring and insolvency in Mauritania, the following organizations and resources can be helpful:

• Commercial Court of Nouakchott: The main judicial authority handling insolvency proceedings in the capital.
• Ministry of Justice of Mauritania: Oversees commercial regulations and provides information on local courts and legal procedures.
• OHADA Official Documentation: For regional legal texts, including the Uniform Act on Collective Proceedings.
• Local Chambers of Commerce: They can provide lists of legal professionals specializing in business law.
• Mauritanian Bar Association: For referrals to qualified insolvency and restructuring lawyers.

Next Steps

If you are facing financial distress or need restructuring and insolvency advice in Mauritania, consider the following steps:

1. Gather all relevant financial documents, contracts, and correspondence related to your business or personal finances.
2. Reach out to a qualified lawyer specializing in restructuring and insolvency law, ideally with experience navigating OHADA procedures.
3. Ask your lawyer to assess your situation and explain all available legal options, including preventive settlement, judicial reorganization, or liquidation.
4. Work closely with your legal counsel to prepare necessary filings and attend any court hearings or creditor meetings as required.
5. Stay informed throughout the process, and do not hesitate to seek further legal opinions if your case is complex or if significant assets are at risk.

Timely and proper legal advice is crucial in restructuring and insolvency matters. Acting promptly can help protect your interests and may increase the likelihood of a positive resolution.