According to Law N° 12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency, proceedings may be initiated by creditors, debtor, members of the Board of Directors or one of them; or the Registrar General.

When application to commence insolvency proceedings is successful, a Court order is issued and an Administrator is appointed by the Court. This will be immediately followed by the First creditors meeting which has 2 functions: establishing the Creditors committee to represent all creditors and definitively approving the Court appointed Administrator.

The administrator must then prepare a Report describing the financial situation of the company and recommending the insolvency proceeding to be followed (liquidation or restructuring).

Within 6 weeks after completion of the report, the Administrator will convene a Creditors general assembly meeting to decide on which insolvency proceeding to follow and verify claims recorded by the Administrator.