Abstract
The damaging effect of corporate failures on virtually every segment of a society has made corporate rescue and restructuring
the paramount consideration of governments and other stakeholders. The global trend is to make laws that promote the survival of companies in distress and ensure that they continue to trade as a corporate entity. Prior to the new legal regime, the only restructuring mechanism in Nigeria was the arrangement
and compromise procedure. However, the CAMA 2020 added other rescue mechanisms to the existing procedure in Nigeria. This aim
of this paper is to analyse the effectiveness of the respective restructuring mechanisms provided by the CAMA 2020 and their
capacity to rescue businesses in distress in Nigeria. The doctrinal research method was adopted as primary and secondary sources
of law were examined. This paper found amongst others that the CAMA 2020 increased the rescue and restructuring options
available to financially distressed companies and creditors in Nigeria, and that some of the corporate rescue and restructuring mechanisms lacked general moratorium. This paper recommended the amendment of the CAMA 2020 particularly in respect of
stand-alone legislation, moratorium and continuing finance of distressed companies during rescue and restructuring period, in
line with best global practice.
Key Words: Corporate Rescue, Restructuring, Administration, Netting, Arrangement
and Compromise.
