Basics of business rescue & its impact on property transactions

Business rescue is a rehabilitation mechanism, through which a business can restructure its business, contracts, debt affairs, other liabilities and assets. To access funds to pay creditors, it might be possible to sell the business’ immovable property. Here’s what you need to know about the sales process if it forms part of a business rescue plan

https://www.schindlers.co.za/2020/basics-of-business-rescue-its-impact-on-property-transactions/

Basics of business rescue & its impact on property transactions

Business rescue was introduced into South African law with the commencement of the new Companies Act No 71 of 2008 (“the Act”), being effective on 1 May 2011.  Business rescue enables a company, with minimal or no cash-flow, to restructure, while obtaining some “breathing room”.

Business rescue is a rehabilitation mechanism, through which a business can restructure its business, contracts, debt affairs, other liabilities and assets. The end goal of course being that the business will recover which will be to the benefit of both its creditors and its employees and directors.