We are all aware of the devastating impact being experienced nationally as a consequence of the current COVID – 19 pandemic.
The pandemic has resulted in many businesses feeling the financial strain of being unable to generate sufficient revenue in order to provide for cash flow necessary to sustain their business and meet their financial obligations.
Many businesses are at present exploring various measures to meet their financial obligations or to reduce their expenditure. Such measures range from retrenchments, salary cuts to financial assistance.
Businesses should be mindful of the possible benefits of making use of business rescue proceedings as a means to ensure their survival.
Business rescue proceedings are available to businesses who are in financial distress and where it is:
- unlikely that the company will be able to pay all of its debts as they become due and payable within the immediately ensuing six months; or
- likely that the company will become insolvent within the immediately ensuing six months.
The purpose of business rescue proceedings is to provide for:
- The temporary supervision of the company, and the management of its affairs, business and property, by a specialist business rescue practitioner.
- A temporary suspension of the rights of creditors and other claimants against the company and its property.
- The development and implementation of a business rescue plan which facilitates the restructuring of the company’s business, property, debt, other liabilities and equity, in order to ensure that the company makes its through its time of financial distress.
It is of great importance to ensure that suitably qualified persons are identified in order to be appointed as the business rescue practitioner(s) of the business. Our offices have a qualified and registered business rescue practitioner and suitable qualified personnel to assist your business with the business rescue proceedings. These qualified personnel include, amongst others, a full – time qualified accountant who will ensure that all financial information is handled transparently.
Should you require further information regarding the topic under discussion please feel free to contact our offices at email@example.com
We are here to guide your business through these challenging times.