In today's tough business climate many companies are feeling the squeeze on their cashflows. In times like these companies often try informal agreements with lenders and other creditors to stay afloat. But when these efforts don't cut it, they face two choices: either to use the rescue processes outlined in the Kenyan Insolvency Act or call it quits and opt to close down and liquidate.
However, liquidation is like a death sentence. It means shutting down the company and trying to pay off debts if there is any money left. Often, there isn't enough cash to go around, leaving creditors and shareholders facing big losses.
