business rescue

  •  business rescue

    Business rescue is simply a legal process to assist businesses that are in financial distress

    From time to time we get inquiries from business owners whose businesses are struggling financially and who seek advice regarding their options. One of those options is Business Rescue; which is a relatively new commercial concept.

    This blog focuses on shedding a little more light on the very complex and technical issue of business rescue and the new Companies Act, which is Act No 71 of 2008; and we are going to focus on Chapter 6 dealing with Business Rescue.

    We hope to answer the following question for entrepreneurs and business owners in general:

  •  Business rescue or liquidation

    What is the difference between the two legal processes?

    In the current tough economic trading conditions; there are many businesses that are under severe financial pressure.

    Yesterday we received the following query and will again try to answer the question put to us here in this blog.

     “My family business is a company and has been operating successfully for nearly 20 years. Over time I’ve also managed to get a few investors to invest money in the business. 2018, however, has been really tough and we are struggling to make ends meet. I feel that we have arrived at a point where its decision time about the future of the business and how to manage it. I was wondering whether you can advise me as to whether or not liquidation is the best route to follow and perhaps you might advise me to rather consider the option of business rescue. Could you please also explain the difference between these two options?”

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