Companies in financial distress are restructuring globally. Due to the business rescue process that was introduced in the new Companies Act, South African companies in financial distress are given a second chance. When in financial distress, companies receive a moratorium on the rights to claimants against the company. That is where we come in. Our business rescue practitioners step in to restructure and rehabilitate your company with the aim of returning it to a more stable and profitable entity.
When a company files for business rescue it is placed under supervision and control of a business rescue practitioner. The following proceedings will then take place:
Assessment of the company's financial situation. This is to determine if the company is viable for a successful rescue. This process saves time and money when the company enters business rescue.
The company formally enters business rescue. Filing of the necessary documents is done with the CIPC. The business rescue practitioner is appointed. This stage is crucial and administratively intensive.
An in-depth analysis of the company is done. The business rescue practitioner engages with all interested parties to draft and formulate a business rescue plan. These parties include banks, financial institutions, creditors, suppliers, SARS and employees.
On approval, the business rescue practitioner ensures implementation is done according to the plan.
The business rescue process is formally terminated and the company can continue to operate profitably.