DID YOU KNOW?
If one looks at the news, more and more companies are making use of business rescue as an effective means to rescue financially distressed businesses. But what is business rescue and what does it mean?
Business rescue proceedings are governed by Chapter 6 of the Companies Act and are aimed at facilitating the financial rehabilitation of financially distressed companies. Such rehabilitation makes provision for the temporary supervision of such companies and the management of their affairs, business and property by a business rescue practitioner.
During business rescue proceedings, there is a temporary stay on the rights of claimants against the company or in respect of property in its possession and the development. The business rescue practitioner is responsible for the preparation and implementation, if approved, of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities and equity.
If done correctly, business rescue could very well save your business.
