In this video Adriaan Smuts, CEO of Business Rescue Exchange, explains why Business Rescue can be an effective alternative for businesses in financial distress.
In this video, we tackle the myth that Business Rescue is just for the owners of the business. There are many stakeholders in a business and Business Rescue aims to save the business by balancing their rights and interests. Watch as Adriaan Smuts, CEO of Business Rescue Exchange, unpacks this topic
Section 133 of the Companies Act No. 71 of 2008 (“the Act”) provides for a general moratorium on legal proceedings against the company in business rescue. The protection of the moratorium afforded to the company often results in creditors looking to the surety for settlement of the company’s debt.
Section 136 of the Companies Act no. 71 of 2008 (“the Act”) allows a Business Rescue Practitioner (“BRP”) to entirely, partially or conditionally suspend, for the duration of the business rescue process, any obligation of the company that arises under a contract to which the company was party to at the commencement of rescue or that would otherwise become due during the rescue process.
Section 133 of the Companies Act 71 of 2008 (“the Act”) makes provision for a moratorium on legal proceedings and enforcement action against a company, or in relation to any property belonging to a company, or lawfully in its possession, being commenced or proceeded with in any forum, during business rescue proceedings, save for certain
What defines a business that is in Financial Distress and what options can one look at in keeping the business going? https://www.youtube.com/watch?v=Eghch_MqCLA
Shareholders (continued) Removal of Practitioner and Practitioner remuneration Shareholders have numerous interests in the well-being of the company, the least of which is the right to receive the net assets of the company in the event of a liquidation (they have a residual interest in the company). To protect their interests, shareholders, as affected
Shareholders Shareholders, as affected persons , are often overlooked during Business Rescue proceedings, however, they are important role players in ensuring the successful rescue of a financially distressed company. In larger companies shareholders frequently have limited access to financial and operational information other than which is available from management at shareholders
Article from Moneyweb Today Struggling department chain Stuttafords has launched a slew of discounts and promotions as time is running out for the retailer to avoid the worst-case scenario of liquidation. The 159-year-old retailer has launched a mix of 50% discounts and three-for-two promotions on merchandise in a bid to lure customers back at its stores and contain bleeding sales.
Business Rescue is defined in the Companies Act as proceedings to facilitate the rehabilitation of a financially distressed company in order that it may continue on a solvent basis or, if that is not possible, will result in a better return for creditors or shareholders than would result from the immediate liquidation of the company.