On 19 May 2020, A&K held an interactive one-hour webinar in conjunction with A&K Forensics & Investigations and Adili Corporate Services to introduce our Distress & Recovery Services that is focused on providing practical advice to businesses to help them navigate through difficult economic situations, including the COVID-19 pandemic.
The speakers comprised of our team of experienced professionals in finance, law, risk and compliance, including Sonal Sejpal and Wangui Kaniaru, - Partners, ALN Kenya | Anjarwalla & Khanna, Willie C. Oelofse – Director, A&K Forensics & Investigations,and Harveen Gadhoke – Partner, Adili Corporate Services.
Many businesses around the world are going through difficult times due to the COVID-19 pandemic’s disruptive impact on normal business operations. Numerous industries have been severely disrupted as both suppliers and customers are not able to fulfil their contractual obligations causing a knock-on effect on local, regional and global economies.
The webinar discussed these services that are designed to address our clients’ need for practical advice and assistance in the management of distressed businesses. They were of the view that the banks that will analyse and act on these concerns will now have a significant advantage not only to manage the level of non-performing loans but also to maximise recovery.
The speakers also tackled the extent of disruption on business, the effect of legislative and other changes on business operations and financial strategy, and options that that can help navigate the COVID-19 pandemic.
The CBK policy measures were also discussed which covered personal loans, corporate MSME borrowers and banks by releasing more cash to the economy by lowering the cash reserve ratio from 5.25 to 4.25% as well as repo tenor extended from 28 days to 91 days. These include the outcomes and effects. This included the various effects on businesses and corporates covering key business indicators, minimising the impact of financial distress, options and strategies available to distressed companies to enable them to meet debt obligations. Finally, they discussed how the legal administrative requirements have been affected, how businesses can adapt and the available opportunities that have emerged during the COVID-19 pandemic.