Our Business Rescue Services

Corporate Business Rescue provides several services to businesses in financial distress. We render these services in the interests of repaying debts and avoiding insolvency.

Services

  • Appointment of the business rescue practitioner through the business rescue process. Practitioner appointment usually relies on their expertise within the industry. It also relies on the court’s approval and the approval of the board.
  • Creation and implementation of a business rescue plan. Specifically, this plan aims to enact restructuring and turn-around strategies.
  • Tax settlement with SARS as a part of offered business rescue services. Alleviation of tax burdens in a stable and sustainable manner. Tax settlement rendered in a legal manner within the best interests of the business.
  • We specialise in helping the mining industry through the business rescue process. Our experience gives us an in-depth understanding of the mining industry.
  • We specialise in helping the agricultural industry through our business rescue services. Our experience in this industry is also thorough.
  • Corporate business rescue. Through the business rescue process, we can assist companies facing insolvency.
  • As a part of the business rescue process, we create a business rescue plan. We tailor this plan to the business itself before implementing it. We do this only with the approval of the board and claimants against the company.
  • Handling and assisting all legal proceedings relevant to the business in financial distress. We also handle legal proceedings relevant to the business.
  • Prevention of insolvency through the business rescue plan.
  • Multi creditor workout. A coordinated and cooperative response by creditors to in an orderly and expeditious fashion support the rescue or workout of a business in financial difficulty rather than to force it into formal insolvency.
  • Turnaround specialist. A person who has the expertise and practical knowledge to identify and correct areas of organisational underperformance and who is able to manage and mitigate organisational risks by implementing the required operational, strategic and organisational changes.

Knowing the extent of the services we provide, contact us for further queries.

WHAT IS BUSINESS RESCUE?

Business rescue proceedings are proceedings aimed to facilitate the rehabilitation of a company that is financially distressed by providing for the temporary supervision of the company, and the management of its affairs, business and property by a business rescue practitioner; a temporary moratorium (stay) on the rights of claimants against the company or in respect of property in its possession; and the development and implementation, if approved, of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities and equity (section 128(1)(b)).

WHAT IS THE AIM OF BUSINESS RESCUE?

The aim of business rescue is to restructure the affairs of a company in such a way that either maximises the likelihood of the company continuing in existence on a solvent basis, or results in a better return for the creditors of the company than would ordinarily result from the liquidation of the company (section 128(1)(b)(iii)).

WHAT IS A BUSINESS RESCUE PRACTITIONER?

A business rescue practitioner is a person appointed, or two or more persons jointly appointed, to oversee a company during business rescue. While the Act defines a business rescue practitioner as one or more persons, the business rescue provisions of the Act do not necessarily refer to or support joint appointments. Furthermore, the word “person” in the Act includes a juristic person. It is therefore arguable, although unlikely, that a company can take appointment as a business rescue practitioner (section 128(1)(d)).

WHAT IS AN AFFECTED PERSON?

Affected persons are important roleplayers in the business rescue process. An affected person is a shareholder, creditor, employee (or their representative) or a registered trade union representing employees of the company. Affected persons have various rights throughout the business rescue process (section 128(1)(a)).

WHAT IS THE TEST FOR BUSINESS RESCUE?

The test for whether or not a company should be placed in business rescue is whether or not the company is financially distressed. The Act defines the words “financially distressed” (section 128(1)(f)) to mean that – it appears to be reasonably unlikely that the company will be able to pay all of its debts as they become due and payable within the immediately ensuing six months (commercial insolvency); or it appears to be reasonably likely that the company will become insolvent within the immediately ensuing six months (factual insolvency)