Regulatory Alerts2016-08-23
Government Bailout: Distressed Companies Should Utilize the Capital Markets
The Capital Markets Authority of Uganda advises financially distressed companies to access long-term financing through equity and bond issuance rather than seeking government bailouts. This strategy leverages the nearly eight trillion shillings available in the local capital market to restructure debt, improve corporate governance, and avoid the inefficiencies associated with state intervention. The document supports this recommendation with case studies of regional firms that successfully recovered from insolvency by utilizing capital markets for recapitalization and strategic restructuring.
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