Restructuring and insolvency proceedings — Mali (OHADA area)

Mac Mahon Avocats advises companies, groups and investors facing financial difficulties in Mali. Proceedings there are governed by the OHADA Uniform Act organising collective proceedings for the discharge of liabilities (AUPC), revised on 10 September 2015 and applicable in the seventeen member States of the Organisation for the Harmonisation of Business Law in Africa.

Applicable legal framework in Mali

The AUPC applies directly: it requires no transposition or national implementing statute and prevails over inconsistent domestic provisions. It provides four routes: conciliation, a confidential out-of-court procedure available before payments are suspended; preventive settlement, a preventive court procedure leading to an approved composition; judicial reorganisation, opened after payments are suspended where recovery is not manifestly impossible; and liquidation of assets, which organises the realisation of the estate.

The AUPC also provides simplified procedures for small enterprises, a regulated status for insolvency practitioners and a directors' liability regime (action to make good the shortfall, personal bankruptcy) whose time limits are a matter of public policy.

Courts with jurisdiction

Mali has a commercial court in Bamako with jurisdiction over AUPC proceedings. The Mali Conciliation and Arbitration Centre, attached to the chamber of commerce, offers an amicable route.

Court primarily concerned: Commercial Court of Bamako. Jurisdiction is determined by the debtor's principal establishment, or by the registered office for legal entities.

Local economic context

A landlocked economy, Mali depends on road corridors to Dakar, Abidjan, Lomé and Cotonou. Gold, cotton and livestock are the main sectors; logistics costs and supply disruptions weigh heavily on margins.

Sectors handled

Matters arising in Mali mainly concern: gold and mining services, cotton and agro-processing, road transport and trading, construction, telecoms and retail. These activities involve cash cycles, bank financing issues and subcontracting chains whose analysis determines the choice of procedure.

Specific features of Mali matters

Malian cases require assessing how transport costs and supply disruptions affect the viability of the business, and how measures affecting regional trade impact ongoing contracts. Receivables owed by public principals are common.

Scope of our work

The firm acts in an advisory capacity: analysis of the financial and legal position, mapping of liabilities, selection of the appropriate procedure, preparation of the documents submitted to the conciliator or to the expert in preventive settlement, negotiation with banks and trade creditors, and coordination with proceedings opened in France for multi-jurisdictional groups.

Representation before the Malian courts is provided by lawyers admitted to the local bars, with whom the firm works in coordination. This arrangement complies with the territorial rules applicable to the legal profession.

Coordination with France

For groups present in both France and Mali, coordination requires identifying each entity's centre of main interests, anticipating the effects of the proceedings on security interests and intra-group guarantees, and addressing recognition of judgments through exequatur. There is no uniform recognition instrument between OHADA and the European Union: each judgment follows ordinary law or the applicable bilateral treaties.

Frequently asked questions

Does the AUPC apply despite the regional context?

Yes. The AUPC remains in force in Mali, an OHADA member State; its practical implementation depends on the functioning of the courts seised.

Is conciliation suitable for a business dependent on logistics corridors?

It allows confidential renegotiation of payment terms with main creditors before payments are suspended, which can suit difficulties that are cyclical in nature.

Which law governs insolvency proceedings in Mali?

The OHADA AUPC of 10 September 2015, which applies directly and prevails over inconsistent national provisions.

Which court has jurisdiction?

Commercial Court of Bamako, depending on the debtor's principal establishment.

Does the firm appear before the local courts?

No. The firm acts in an advisory capacity only, in coordination with lawyers admitted to the local bars.

Is a judgment given in Mali effective in France?

It requires an exequatur procedure in France, under ordinary law or any applicable bilateral treaty.

Related topics

Working jointly with our local partner lawyers

Matters within the OHADA area are handled together with partner lawyers admitted to the local bars. Those colleagues, admitted before the competent courts, carry out procedural steps and appear before the courts. Mac Mahon Avocats works alongside them, providing restructuring advice and coordinating the matter from Paris.

This arrangement complies with the applicable professional rules: the firm does not itself provide court representation before the courts of the OHADA member States.

Discuss a Mali matter

An initial confidential discussion helps identify the appropriate procedure (conciliation, preventive settlement, judicial reorganisation or liquidation of assets).

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Advisory work only, together with our partner lawyers admitted to the local bars, who provide representation before the competent courts. No outcome can be guaranteed: every situation depends on the facts and on the court's assessment.