The business rescue process set down in the New Companies Act attempts to avoid liquidation and to give a Company in financial distress respite from its Creditors hence giving it breathing space to restructure its affairs.
We are experienced Business Rescue Practitioners but also give advice to all affected parties, such as Creditors, Shareholders and Employees (including Directors and Members).
BUSINESS RESCUE EXPLAINED
Why Business Rescue
If in the ensuing six months your business is either unlikely to be able to pay all its debts as they fall due and payable, or if it appears likely that the Company will become insolvent, then your business may be a candidate for business rescue.Learn More
To provide a Company or Close Corporation with temporary supervision and protection against its Creditors (“breathing space”) in order to reorganise and restructure its affairs.Learn More
Business Rescue is similar to the US Chapter 11 Bankruptcy Protection as in terms of s.133 of the Act it provides a moratorium on all legal processes (e.g. summonses, applications for liquidation etc.)Learn More
Either the Board can resolve to voluntarily begin business rescue proceedings, alternatively an affected person may make a formal Application to the High Court all as described in s.129 (Resolution) and s.131 (Court Order)Learn More