ADVOKS GLOBAL · KENYA
Insolvency Act
560A. Considerations to take into account on applications for approval to lift moratorium
Edition: 2022-12-31 · In force
560A. Considerations to take into account on applications for approval to lift moratorium
(1)When considering whether to grant its approval under section 560, the court or the administrator may in particular take into consideration where appropriate—(a)the statutory purpose of the administration;(b)the impact of the approval on the applicant particularly whether the applicant is likely to suffer significant loss;(c)the legitimate interests of the applicant and the legitimate interest of the creditors of the company, giving the right of priority to the proprietary interest of the applicant;(d)whether the value of the secured creditor's claim exceeds the value of the encumbered asset;(e)whether the secured creditor is not receiving protection for the diminution in the value of the encumbered asset;(f)whether the provision of protection may be feasible or overly burdensome to the estate;(g)whether the encumbered asset is not needed for the reorganization or sale of the company as a going concern;(h)whether relief is required to protect or preserve the value of assets such as perishable goods; or(i)whether in reorganisation, a plan is not approved within six months.(2)An approval granted under subsection (1) shall be for a period of not more than twenty-eight days.