Towards public interest insolvency: A case for COVID19 induced corporate rescue of businesses in Uganda

Abstract

Private schools in Uganda are a category of businesses that have faced considerable financial hardship owing to their closure by government in a bid to curb the spread of the corona virus. This is so much so because private schools solely depend on school fees from students as a source of revenue. The closure of schools by government means that students are unable to attend school and pay school fees. Considering that many private schools have credit obligations with numerous financial institutions , which obligations arise from the need to expand in order to accommodate more students and thus generate more revenue , their closure has resulted in a failure to meet credit obligations. There is a need for intervention to enable the private schools wither the current storm that they are facing. Corporate rescue is one of the interventions that can be used to ensure that private schools are able to meet their credit obligations and to survive liquidation. This study examines the prospect of utilizing corporate rescue to enable private schools meet their credit obligations. It mainly focuses on the use of informal corporate rescue measures to aid private schools meet their credit obligations.