Uganda's laws provide for select business rescue mechanisms and liquidation proceedings under both the Companies Act, 2012 and the Insolvency Act, 2011. Investors faced with financial distress can pursue formal insolvency proceedings, winding up or liquidating the business, or pursue an out-of-court settlement. Investors can also elect to pursue mediation and arbitration instead of protracted court proceedings that can be costly and take years to be resolved. Investors are at liberty to tailor their distress response to the prevailing circumstances. Startups are encouraged to elicit expert assistance to prepare a risk management plan to mitigate and enhance both foreseen and unforeseen threats (negative risk) and opportunities (positive risk) that may impact the company's solvency. Founders should be aware of the market reputation risks associated with insolvency proceedings and should act accordingly to consider less risky options, e.g., in the case of debt distress, negotiating and implementing a reorganization plan.