Business Rescue in South Africa

There are a number of challenges and opportunities in South Africa for business rescue. Here are some of the Opportunities and challenges.

Opportunities:

  • Regulation of the industry and accreditation of business rescue practitioners.
  • Creation of a distressed fund to make PCF available.
  • Education and awareness (specifically of directors)
  • Positive marketing of business rescue.
  • Needs national championship through Parliament.
  • Use of pre-packs.
  • Investors buying companies at a discount.
  • Build a body of knowledge.
  • Innovation and collaboration.
  • Joint appointments and transfer of skills.
  • Educating business on restructuring opportunities presented through business rescue.

 

Challenges:

  • Lack of regulation of the industry
  • Business rescue practitioners lack of skills and experience.
  • Lack of availability of PCF.
  • Low levels of education and awareness of all stakeholders.
  • Negative publicity and no success stories.
  • Lack of legal clarity and no specialised courts.
  • No judicial oversight, business rescue practitioners have free reign.
  • Not using business rescue early enough.
  • The credibility of the process.

 

The above points are taken from the Deloitte Restructuring Outlook Survey 2016.

2018-08-26T18:48:08+00:00