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
Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.
Recommendedby NEWSROOM AI
The Money Show’s Bruce Whitfield interviews Fanie Haarhoff, Harley Davidson South Africa Dealer Principal.
The Money Show’s Bruce Whitfield interviews Tebogo Mogola, co-founder and Director at Sneaker Exchange Expo.
It just became easier than ever to buy local when shopping online. Bruce Whitfield interviews Proudly SA’s Eustace Mashimbye.
The Money Show’s Bruce Whitfield interviews South African Mint Managing Director Tumi Tsehlo.
The Money Show’s Bruce Whitfield interviews Zodwa Velleman, CEO at the Vapour Product Association of South Africa.
The Money Show’s Bruce Whitfield interviews Andrew Woodburn, Managing Director at Amrop Woodburn Mann.
The Money Show’s Bruce Whitfield interviews Nkayi about her attitude to money (hopes and fears, successes and failures, etc.).
News 24 investigative journalist Kyle Cowan reports that Zuma was granted the loan despite the fact that he could not afford it.
The VhaVenda King's spokesperson Mathivha Makonde says the King is calling on authorities to help him correct the wrong.
The Baby Saver is a metal container outside a safe house. Responders are alerted once a woman places their unwanted baby inside.
Sanef's Katy Katopodis says the Sunday Times saga has done great damage to our society, democracy and to journalism.
Claims have been made that the perfume industry don't want consumers to know the real cost of making these products.
Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.
Snake handler Willem van Zyk of Blouberg Snake Rescue says he's already being kept busy with callouts.
These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.