Navigating Financial Distress with Expert Guidance
Expert corporate recovery in Mombasa offers a lifeline to businesses facing financial distress, providing strategic pathways beyond simple liquidation. In a dynamic but challenging economic climate, companies can face cash flow problems that threaten their survival. Swipe Recoveries Experts Ltd provides comprehensive corporate recovery and advisory services. We work alongside directors, creditors, and insolvency practitioners to explore all viable options, from debt restructuring and turnaround strategies to formal insolvency procedures. Our goal is to preserve value, protect stakeholders' interests, and, where possible, steer the company back to profitability, guided by the robust framework of Kenya's insolvency laws.
The Insolvency Act, 2015: Your Guide Through a Crisis
The cornerstone of all corporate recovery and insolvency proceedings in Kenya is the Insolvency Act, No. 18 of 2015. This modern legislation shifted the focus from liquidation to business rescue. Our team possesses in-depth knowledge of the Act's provisions, including Administration, Company Voluntary Arrangements (CVAs), and liquidation. When a company enters administration, an administrator is appointed to try and rescue the company as a going concern. We can assist administrators by providing crucial services like asset tracing, debt collection from the company's debtors, and asset valuation. Our work is also guided by the Companies Act, 2015, which outlines the duties and responsibilities of directors, especially when a company is facing insolvency.
We ensure that every action taken is compliant with the procedural requirements set out in the Act, including the proper conduct of creditors' meetings and adherence to the prescribed order of payment priorities in a liquidation. We work closely with appointed Insolvency Practitioners and the Official Receiver to facilitate a smooth, transparent, and legally compliant process, whether the goal is restructuring the business in Mombasa's CBD or realizing assets in its industrial areas.
Our Corporate Recovery Services & Procedure
Our approach to corporate recovery is proactive and strategic, tailored to the unique situation of each business. 1. Initial Assessment: We begin with a confidential review of the company's financial position, creditor pressures, and operational challenges. This helps to determine the most appropriate course of action—be it an informal workout or a formal insolvency procedure. 2. Turnaround & Restructuring Advisory: If a rescue is viable, we assist in developing a turnaround plan. This can involve negotiating with creditors (including banks and KRA) for a moratorium or new payment terms, implementing cost-cutting measures, and streamlining operations. We can facilitate negotiations for a Company Voluntary Arrangement (CVA). 3. Administration & Liquidation Support: In formal insolvency, we provide critical support services to the appointed Insolvency Practitioner. This includes securing and valuing company assets, collecting the book debts (accounts receivable), conducting investigations into the company's affairs, and tracing any misappropriated assets. 4. Creditor Services: We also represent creditors, helping them to file their claims correctly, attend creditors' meetings, and maximize their returns from the insolvency process.
Debt Recovery & Auctioneering Coverage in Mombasa, Kenya
Swipe Recoveries Experts Ltd provides commercial recovery, skip tracing, and auctioneering services across Mombasa, Kenya and all 47 counties in Kenya.
Understanding the Costs of Corporate Recovery in KES
The costs associated with corporate recovery and insolvency are highly variable and depend on the chosen path and the complexity of the case. Transparency is key, and costs are governed by the Insolvency Act. Advisory & Turnaround Fees: For informal restructuring and turnaround advisory, our services are typically charged on a retainer and/or hourly basis. A monthly retainer could range from KES 100,000 to KES 300,000+ depending on the company's size. Hourly rates for senior consultants are in the region of KES 10,000 - KES 25,000. Formal Insolvency Costs: In a formal process like administration or liquidation, the fees of the Insolvency Practitioner and their agents (like Swipe Recoveries) are paid out of the company's assets. These fees are regulated and must be approved by the creditors or the court. For specific tasks like debt collection, we may work on a commission basis (e.g., 10-20% of debts collected for the estate). All costs are documented and reported to creditors as part of the statutory process, ensuring full accountability.
