Business Rescue

​​​​​​​​​​​​​​In 2008, a Companies Act amendment introduced 'business rescue' proceedings into South African law to facilitate the corporate rescue and rehabilitation of companies that are financially distressed.

Business rescue proceedings are designed to facilitate the rehabilitation of a company that is financially distressed. The Companies Act provides for the temporary supervision of the company and of the management of its affairs, business and property. It also allows for a temporary moratorium on the rights of claimants against the company or property in the company's possession, and if approved, the development and implementation of a business rescue plan. The plan aims to rescue the company by restructuring its affairs, business, property, debt and other liabilities and equity.

The objective of business rescue is to maximise the likelihood of the company continuing in existence on a solvent basis or, if this is not possible, to obtain a better return for the company's employees, creditors and shareholders than would result from the immediate liquidation of the company.

In our experience, successful business rescue matters require the support of employees and creditors, a highly skilled business rescue practitioner, expert legal advice, a workable business rescue plan and post-commencement finance. We will work with you to ensure that all these elements are in place to give your business the best chance of success.​

We assist clients with a number of business rescue related matters, including:​​

  • assisting a company in financial distress to assess whether or not to enter into business rescue;
  • providing advice to business rescue practitioners on all elements of a business rescue;
  • providing advice to a company in distress that may be required to enter business rescue;
  • providing advice to creditors, shareholders or employees of a company in business rescue;
  • providing advice to parties who may wish to provide funding to a company in business rescue; and
  • providing advice to parties who may want to conclude a transaction with a company in business rescue.

Johannesburg +27 (0) 11 530 5000
Cape Town +27 (0) 21 431 7000
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