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What is Business Rescue?
Business rescue refers to the legal process of bankruptcy protection for businesses (companies, close corporations, and state-owned enterprises) in financial distress, offered by Chapter six of the Companies Act. Alternatively, companies can choose to seek a compromise with creditors under the guidance of the Companies Act. The legal protection afforded by business rescue provides the necessary breathing space to enable a comprehensive restructuring and/or turnaround to be carried out in the most efficient and effective manner.
How do we do it?
We follow a holistic business-minded approach to every business rescue. We do not consider this a purely legal process insomuch as, whilst we comply with the Companies Act, we seek to resolve the past challenges that have caused financial distress and hand back a healthy sustainable business to the board or shareholders.
Our business rescues are operationally focused. During the business rescue process, we can react promptly to any changes in the external and internal business drivers. We call upon the extensive depository of experience that exists within our team as well as upon a vast network of trusted business associates to assist in more technical matters.
When engaging with us we will spend time:
Explaining the pros and cons of business rescue.
Ensuring that all regulatory requirements are met.
Assisting with the management of cash.
Analysing the principal business drivers of your business.
Implementing necessary changes to operate efficiently.
Working with management to formulate a robust turnaround and/or restructuring plan to be implemented under business rescue.
Obtaining the buy-in of creditors and other stakeholders to the rescue plan.
Finalising the rescue in the shortest possible time.
We believe in collaboration rather than confrontation notwithstanding the sometimes acrimonious and litigious stance taken by counterparties. We remain close to all the commercial banks and funding institutions. We are experienced in litigious and confrontational matters, wherein we follow a balanced and considered approach with stakeholder outcomes and timeframes to conclusion front of mind. The primary goal of our business rescues is always to save as much of the operation as possible, through build a platform for sustainable growth, to preserve jobs and to improve value for stakeholders.
Our aim is not to merely conduct rescues in terms of the legal framework but rather to affect a complete turnaround and restructuring approach, allowing us to hand back a healthy sustainable business to the board or shareholders. If this is not achievable, then we will focus on providing the creditors and shareholders a better return in rescue than they could expect in a liquidation.
Is this the right solution for you?
If your perception is that there remains a glimmer of hope of saving the business, then a formal rescue may be the answer. If you are under threat of losing the business, then give us a call for a no-obligation high level confidential discussion on how best to proceed.
To decide if business rescue is the optimal route to take you need to ask two fundamental questions:
Is the business financially distressed, meaning that the business is unlikely to be able to pay its obligations as and when they fall due in the next 6 months?
Is there a reasonable prospect of saving the business with professionally administered turnaround interventions?