The Basics of Business Rescue

The Basics of Business Rescue

By: Lauren Becker, Director; Eric Levenstein, Director: Head of Insolvency, Business Rescue & Restructuring practice

Restructuring of companies in financial distress is on the increase globally. In line with this trend, Chapter 6 of the new Companies Act, No. 71 of 2008 (the Act) introduces business rescue to the South African business landscape.

South African companies that are financially distressed or that trade in insolvent circumstances in South Africa now have an opportunity to reorganise and restructure. This has far reaching effects on creditors, financial institutions, shareholders, employees and restructuring specialists.