South African Restructuring and Insolvency Practitioners Association

I am at the Indaba Hotel, just outside Johannesburg for the South African Restructuring and Insolvency Practitioners Association (SARIPA). I am here speaking trying to give a Scottish flavour to the subject of cross border asset recovery in liquidations.


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I am delighted to be asked to speak, not least because South Africa in the Spring is very pleasant, but also because it is also very interesting to hear from South African colleagues in relation to how their fairly recent Business Rescue proceedings (which may crudely be described as a cross between Administration and US Chapter 11 Procedure) reform is bedding in. The current themes here seem to be in common around the restructuring world. These include calls for greater judicial development and education, as well as greater speed. Perhaps more than anything South African practitioners are looking for judicial predictability in liquidations and business turn around matters.

One of the reasons I am speaking about asset recovery in Scotland is because of the perceived abuse of Scottish Limited Partnerships- with off shore criminal money washing through these Scottish institutions. Practitioners in other jurisdictions are increasingly interested in how assets can be recovered from SLP’s. I am discussing dawn raids under s1 of the Administration of Justice Act (information is often key in tracing and fraud claims), Sequestration of SLPs and remedies such as interdict designed to prevent removal of assets from Scottish jurisdiction.

One thing is for sure: We cannot be complacent about fraud and it’s proceeds being foreign to Scotland!

Eric Baijal
Head of Insolvency and Litigation

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