INSOLVENCY – NIGERIA’S FIRST COMPANY IN ADMINISTRATION SET TO PAY 105 OUTSTANDING CREDITORS
On December 8, 2023, the Federal High Court delivered its judgment in Nigeria’s first ever Administration proceedings on the Moorhouse Company Ltd (the “Company”), directing the payment of 105 outstanding creditors of the Company. Per the Court’s judgment, this settlement is to be completed by the Company on or before Sunday, December 31, 2023. The Court’s judgment follows the earlier Interlocutory Order of the Court dated July 22, 2022, appointing Mr. Bidemi Daniel Olumide, Managing Partner at AO2LAW, as the Administrator of the Company necessitated by the need to preserve the Company’s assets and resolve its long-standing debts accruing to nearly $3Million United States Dollars.
Following the Federal High Court’s judgment, the duties and powers of the Administrator have been fully discharged, and the directors and shareholders of the Company have been restored to their respective managerial positions. This series of events signifies the successful resolution of the indebtedness of the first insolvent Nigerian company admitted into Administration under the Companies and Allied Matters Act 2020 and the Insolvency Regulations 2022 and indicates the potential that Administration as a newly introduced insolvency option has in Nigeria’s corporate space.
