Business Rescue and Insolvency

Debt management is a crucial element of financial success. The increasing complexity of corporate and financial structures highlights the need for professional advice to pre-empt financial overexposure and reduce the risk of insolvency.

Business rescue

Business Rescue, as defined, by the Companies Act 2008, provide the means to restructure and recapitalise a company in financial distress as an alternative to liquidation. These provisions allow affected persons and creditors to participate in the recovery of their investment or debt. The challenge is to preserve essential assets and human capital of a troubled business. Our team will attempt to achieve this through speedy and decisive implementation of turnaround and rescue strategies and procedures.

Insolvency

Insolvency Law is a statute that affords to an insolvent debtor, relief from and sometimes full discharge of debts upon his surrender for the benefit of his creditors of all his property not exempt by law.

Liquidation has also become a recognised debt recovering tool for commercial enterprises. We have a strong and market-recognised insolvency practice with a proven track record in debt recovery through insolvency mechanisms when necessary, as well as in advising on pure insolvency issues.

Informal restructuring

When a distressed company or its major creditors want to avoid a formal business rescue, we assist to achieve a negotiated solution to return the enterprise to financial health. This course of action is preferred when creditors would achieve poor returns in a formal restructuring or insolvency process. We can assist with restructuring the business and its management, as well as capital reorganisation, in the process to facilitate a return to viability of a company and achieving a reasonable return for creditors.

Offers of compromise

Our team is able to advise clients on the various implications of offers of compromise in terms of section 155 of the Companies Act, as well as the refinancing of liabilities by way of issuing preferent shares or utilising other recapitalisation tools.