Business Rescue
Hold back creditors and rescue your business
Business Rescue
Hold back creditors and rescue your business
Business Rescue
definition
Business Rescue aims to do exactly what the name says; to rescue or rehabilitate a Company which is under financial duress. A rescue plan must be drawn up by the Business Rescue Practitioner (in consultation with certain parties), which must be implemented in an attempt to save the Company.
BUSINESS RESCUE DEFINITION
Business Rescue aims to do exactly what the name says; to rescue or rehabilitate a Company which is under financial duress. A rescue plan must be drawn up by the Business Rescue Practitioner (in consultation with certain parties), which must be implemented in an attempt to save the Company.
The Choice you have under the New Companies Act!
If the board of directors of a company has reasonable grounds to believe that the company is financially distressed, they must either;
- Put the company under business rescue, or;
- Deliver a written notice to all shareholders, creditors, employees and trade unions, that the company is financially distressed, and give reasons why the company is not put under Rescue
Who can Apply
Directors
Shareholders
Employees
Trade Unions on behalf of their members
Resue Order Granted
There is it that the company is financially distressed
There reasonable prospects of saving the company
Procedural requirements were not complied with
If the court deems it “Just and Equitable” that the order be granted.
BUSINESS RESCUE Process
During the Rescue Proceedings, there is a general moratorium on legal proceedings against the company. Because this moratorium might prejudice the companies, legal opponents, the prescribed time periods allowed in the process, are also suspended for the same period that the matter was postponed by the moratorium. There are a few exceptions, however.
BUSINESS RESCUE Process
During the Rescue Proceedings, there is a general moratorium on legal proceedings against the company. Because this moratorium might prejudice the companies, legal opponents, the prescribed time periods allowed in the process, are also suspended for the same period that the matter was postponed by the moratorium. There are a few exceptions, however.
Legal Proceedings may commence when
If written consent is given by the BRP;
As a set-off in legal proceedings by the company
When the court has so ordered;
Proceedings of any property or right which the company holds as trustee
Criminal proceedings against the company, its directors or officers are unaffected
A guarantee or surety by the company is unenforced without leave from the court
Frequently asked questions
Get immediate answers to your questions
Frequently asked questions
Get immediate answers to your questions
Business Rescue FREQUENTLY ASKED QUESTIONS
Can an application For Business Rescue be made after legal proceedings for the liquidation of the company has started?
Yes – irrespective if to Application was made by or against the Company. The application for Business rescue suspends the Liquidation Application until the court gave a discussion. Should the Rescue Order be granted then the application for liquidation cannot go ahead. Should the order not be granted, the liquidation application goes ahead.
What is the Purpose of The Business Rescue Procedure?
Business Rescue aims to do exactly what the name says; to rescue or rehabilitate a Company which is under financial duress. A rescue plan must be drawn up by the Business Rescue Practitioner (in consultation with certain parties), which must be implemented in an attempt to save the Company.
What form does the Business Rescue Plan take?
Can take many forms, which might include a total or partial restructuring of the companies’ affairs, property, business, shares & shareholding, Debt, operation, and equity, to make the company commercially viable, and to try and create a better result for the creditors and shareholders than an immediate liquidation would bring.
Who May apply to court for a Business Rescue Order?
- Directors
- Shareholders
- Employees
- Trade Unions on behalf of their members
My Company is currently under Judicial Jud Management, can I still place it under Business Rescue?
Yes
Who is qualified to be appointed as a Business Rescue Practitioner?
[Sec 138(1)(e)]
The Act introduces a concept of a “professional business practitioner”. He must be:
- In good standing with a regulated profession. (We will later find out what exactly this means)
- Trusted;
- Not disqualified to be a director of a company;
- Not bee placed under probation;
- He must not be “related” to the company. (Such as xx xx xx)
The Act furthermore (s138(2) stipulated that the minister may (to regulate Business Rescue Practice) designate certain persons or associations as Business Rescue Practitioners if that person or association:
- Is committed to achieving Rescues of Companies in accordance with the Act;
- Functions predominantly to promote sound principles and good practice of business turnaround and rescue; and,
- Have sufficient human-, financial- and operational resources and adequate administrative procedures and safeguards, to enable it to function efficiently and effectively to carry out its in terms of chapter 9 of the Act, (which deals with Business Rescues).
Danie Potgieter Attorneys
Contact
Tel- 010 286 1966
Fax- 012 663 5627
[email protected]
Address
Ground Floor, Building C
1 Shelanti Street, Centurion, Gauteng
GPS-COORDINATES
South 25.50.933
East 028.11.680
ASSET PROTECTION
New Companies
Family Trusts
Strategic Liquidations
Corporate Restructuring
TAX STRATEGY
Tax Avoidance
Tax Liquidations
Tax Relieve Applications
BUSINESS RESCUE
Business Rescue
Danie Potgieter Attorneys
Contact
Tel- 010 286 1966
Fax- 012 663 5627
[email protected]
Address
Ground Floor, Building C
1 Shelanti Street, Centurion, Gauteng
GPS-COORDINATES
South 25.50.933
East 028.11.680
ASSET PROTECTION
New Companies
Family Trusts
Strategic Liquidations
Corporate Restructuring
TAX STRATEGY
Tax Avoidance
Tax Liquidations
Tax Relief Applications
BUSINESS RESCUE
Business Rescue
Danie Potgieter Attorneys
Contact
Tel- 010 286 1966
Fax- 012 663 5627
[email protected]
Address
Ground Floor, Building C
1 Shelanti Street, Centurion, Gauteng
GPS-COORDINATES
South 25.50.933
East 028.11.680
ASSET PROTECTION
New Companies
Family Trusts
Strategic Liquidations
Corporate Restructuring
TAX STRATEGY
Tax Avoidance
Tax Liquidations
Tax Relieve Applications
BUSINESS RESCUE
Business Rescue