Business Rescue

The Companies Act (as amended) introduced some relief for financially distressed companies through the creation of the facility of Business Rescue.

The new legislation provides an opportunity for companies to be restored to financial health by inter-alia:
• The appointment of a Business Rescue practitioner who will implement a business rescue plan which will in turn:
o allow for a strategy to achieve that end;
o provide for the temporary administration of the financially distressed company;
o should restoration be impossible, provide for such steps so as to ensure maximum yield for stakeholders in the event of insolvency.
• Allowing for the suspension of litigation, which companies under Business Rescue may be facing, as well as certain contractual obligations.

Campbell Attorneys are able to guide businesses through this process to ensure successful restoration (or at least minimum prejudice) by providing services including:
• Advice on the viability of business rescue.
• Advice to creditors, investors, shareholders or employees of companies in Business Rescue.