The Companies Act provides for the temporary supervision of the company and of the management of its affairs, business and property. This is called Business Rescue. Business rescue proceedings are designed to facilitate the rehabilitation of a company that is financially distressed.
Business rescue proceedings also allows for a temporary moratorium on the rights of claimants against the company or property in the company’s possession, and if approved, the development and implementation of a business rescue plan.
The objective of business rescue is to maximise the likelihood of the company continuing in existence on a solvent basis or, if this is not possible, to obtain a better return for the company’s employees, creditors and shareholders than would result from the immediate liquidation of the company.
In our experience, successful business rescue matters require the support of employees and creditors, a highly skilled business rescue practitioner, expert legal advice, a workable business rescue plan and post-commencement finance. We will work with you to ensure that all these elements are in place to give your business the best chance of success.
Our team has specialist knowledge, skills and experience in all aspects of the business rescue process and it is our aim to help companies in distress during these economical trying times.