Businesses can face periods of financial distress due to various factors – cash flow crises, economic downturns, market competition, or unforeseen external events – that may necessitate restructuring or, in extreme cases, winding up operations. Nepal’s legal system provides mechanisms for corporate restructuring and insolvency under the Insolvency Act and Company Act, allowing companies to reorganize their debts or liquidate assets in an orderly manner. These processes, however, are complex and require careful planning and execution under court supervision and in coordination with creditors, regulators, and potentially investors. The goal in any restructuring or insolvency scenario is to balance the interests of creditors, shareholders, and other stakeholders, while complying with all legal requirements to avoid personal liabilities for directors or accusations of wrongful trading.

Gandhi & Associates is a leading firm in Nepal for handling liquidation, insolvency, and corporate restructuring matters. We have acted as advisors to companies in distress as well as to creditors and investors dealing with troubled entities. Our services include advising on voluntary liquidation and deregistration of companies, creditor negotiations and settlements, and court-driven insolvency proceedings (including petitioning for insolvency and serving as court-appointed liquidators or legal advisors to liquidators). We also assist healthy companies in acquiring or investing in distressed assets, navigating issues like asset sales out of insolvency or debt-equity swaps. In every engagement, our team’s multidisciplinary knowledge of corporate, banking, tax, and employment law – combined with our experience across multiple industries – enables us to develop restructuring plans or exit strategies that are legally sound and commercially effective. We prioritize minimizing risk and preserving value, guiding clients through these challenging transitions with clarity and foresight.

Representative Experience:

• Appointed as the liquidator for a social enterprise operating in the adventure tourism sector, managing court-supervised winding-up proceedings, asset liquidation, and creditor settlements;
• Advised two digital content platforms bundled by one of Nepal’s largest mobile network operators on restructuring their operations and facilitating orderly market exit through creditor settlements;
• Advised an Indian tobacco products manufacturer on the restructuring and phased closure of its Nepali operations, including formulation of a creditor settlement plan and regulatory compliance under local insolvency laws;
• Guided multiple businesses – including a hospitality group, a seed production company, and a local FMCG player – through corporate restructuring and dissolution processes, addressing creditor claims and asset distribution; and
• Advised a leading telecom operator in Nepal on restructuring and regulatory compliance following a change in foreign ownership, ensuring uninterrupted operations and post-acquisition compliance.