The OHADA Uniform Act has organized the order in which proceeds from the sale of secured immovable assets and movable assets, respectively are to be distributed among competing creditors.
Immovable Assets
- Creditors for legal costs incurred in organizing the procedure for the sale of the assets and distribution of the proceeds;
- Employees for their wages and salaries;
- Mortgage holders, in chronological order of the dates of registration of their respective mortgages etc.
If there are not sufficient proceeds to satisfy all the creditors, payment is made in full to each category until a category is reached where there are not sufficient proceeds to satisfy all the creditors in that category.
Movable Assets
The distribution of proceeds of a sale of movable assets to the following categories of creditors is in the following order;
- Creditors for legal costs incurred in organizing the procedure for the sale of the assets and distribution of the proceeds;
- Creditors for expenses incurred in safeguarding the assets concerned in the interests of creditors having a prior entitlement;
- Employees for their wages and salaries;
- Beneficiaries of a pledge, in chronological order of the creation of the pledge etc.
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