The abuse of business rescue proceedings in the aftermath of the COVID-19 pandemic: A debtor’s paradise?
Essentially, business rescue offers a rehabilitation process to companies in financial distress. At its best, business rescue creates a much-needed “win-win” solution for all the affected parties. At its worst, business rescue is used as a means to frustrate creditors from exercising their rights. Unfortunately, in the economic aftermath of the COVID-19 pandemic, more and more companies will resort to business rescue proceedings as a means to seek refuge from creditors even if the facts do not justify this. A typical example can be found in the recent judgment of Standard Bank of South Africa Limited v C and E Engineering (Pty) Ltd And Others  ZAGPJHC 255 handed down by the Johannesburg High Court on 14 August 2020.