Many companies enter business rescue for the wrong reasons.— Dr Eric Levenstein, Werksmans Attorneys
It comes down to the nuts and bolts of the plan and competency of the practitioner.— Dr Eric Levenstein, Werksmans Attorneys
South African companies in severe “financial distress” may file for “business rescue” in terms of Chapter Six of the Companies Act.
Business rescue entails the reorganisation and restructuring of a business in order to return it to profitability.
The Act offers a moratorium on any liquidation procedures against a company in business rescue.
“Financial distress” in terms of the Act means that it seems reasonably unlikely that a company would be able to service its debts for the upcoming six months, or it’s reasonably likely to become insolvent within the next six months.
A company must prove it has a fair chance of recovery to be eligible for business rescue.
Listen to the interview in the audio below (and/or scroll down for more quotes from it).
Stuttafords went into business rescue… there were disputes… resulting in suppliers losing faith… Unfortunately, Stuttafords is no more…— Dr Eric Levenstein, Werksmans Attorneys
It’s about getting in early…— Dr Eric Levenstein, Werksmans Attorneys
SAA has brought in a chief restructuring officer… to look at turnaround strategies…— Dr Eric Levenstein, Werksmans Attorneys
Directors need to buy-in in the process…— Dr Eric Levenstein, Werksmans Attorneys
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