The business rescue process introduced in the new Companies Act, No 71 of 2008 allows some breathing space to companies facing financial distress. The new procedures allow a business rescue practitioner to step in and keep the company operating, either to return the company to profitable ways or to ensure a better return for creditors than they would receive in the case of liquidation.
Our focus is on guiding our clients to make the right decisions at the right time. We can help you proactively manage the process, decrease legal risk and financial exposure and explore the available options.
Our services include:
- Managing financial corporate overexposure and debt restructuring.
- Obtaining adequate and enforceable security.
- Liquidation proceedings and sequestration.
- Compromises.
- Business rescue.
- The administration of insolvent estates.
- Cross-border insolvency.
- Recovery action.
- Impeachable transactions.
- Directors' personal liability.
- Forensic investigations.
- Preservation orders.
- Insolvency inquiries.
- Creditors' meetings and proof of claims.
- Training seminars on business rescue proceedings in the new Companies Act.
- Perfection of Notarial Bonds.
The African economy is ever-changing, and the need to adapt in response is essential to any thriving company. However, often businesses fall victim to the harsh financial reality that not all companies can thrive in our economy.
CDH's highly skilled and experienced Business Rescue, Restructuring & Insolvency team in both South Africa and Kenya is able to meet the needs of our clients regardless of the economy and the many challenges it brings.
2022
2021
Services
The business rescue process introduced in the new Companies Act, No 71 of 2008 allows some breathing space to companies facing financial distress. The new procedures allow a business rescue practitioner to step in and keep the company operating, either to return the company to profitable ways or to ensure a better return for creditors than they would receive in the case of liquidation.
Our focus is on guiding our clients to make the right decisions at the right time. We can help you proactively manage the process, decrease legal risk and financial exposure and explore the available options.
Our services include:
- Managing financial corporate overexposure and debt restructuring.
- Obtaining adequate and enforceable security.
- Liquidation proceedings and sequestration.
- Compromises.
- Business rescue.
- The administration of insolvent estates.
- Cross-border insolvency.
- Recovery action.
- Impeachable transactions.
- Directors' personal liability.
- Forensic investigations.
- Preservation orders.
- Insolvency inquiries.
- Creditors' meetings and proof of claims.
- Training seminars on business rescue proceedings in the new Companies Act.
- Perfection of Notarial Bonds.
Video
The African economy is ever-changing, and the need to adapt in response is essential to any thriving company. However, often businesses fall victim to the harsh financial reality that not all companies can thrive in our economy.
CDH's highly skilled and experienced Business Rescue, Restructuring & Insolvency team in both South Africa and Kenya is able to meet the needs of our clients regardless of the economy and the many challenges it brings.
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2022
2021
Business Rescue, Restructuring & Insolvency Lawyers
Our Business Rescue, Restructuring & Insolvency team provides strategy advice to boards of directors where the company is financially distressed, to ensure that the directors do not fall foul of their obligations in terms of the Company’s Act.
Our Business Rescue, Restructuring & Insolvency LawyersSECTOR HEAD
Business Rescue, Restructuring & Insolvency News
More newsThe role of shareholders in business rescue proceedings
One of the stated purposes of the Companies Act 71 of 2008 (Companies Act) is to promote innovation and investment in South African markets and provide for the efficient rescue and recovery of financially distressed companies, in a manner that balances the rights and interests of all relevant stakeholders, including shareholders. Business rescue is therefore widely accepted as an alternative to liquidation for financially distressed companies, with the intention of giving such companies the opportunity to reorganise and restructure their affairs for them to regain their solvency. To this end, the definition of “ affected persons ” includes creditors, employees (or their representative), a registered trade union and shareholders. The role played by each “ affected person ” is unique in many ways but can have an impact on the failure or success of any business rescue proceedings.
BRP take the wheel: The effect of business rescue proceedings on directors
One of the areas of uncertainty which is often raised by individuals and entities alike when it comes to business rescue proceedings, is that of the division of function and duty between a duly appointed business rescue practitioner (BRP) and a company’s board of directors.
Evolving power dynamics between a board and business rescue practitioners: It’s a balancing act
As a result of the decision from the Supreme Court of Appeal (SCA) in the case of Tayob and Another v Shiva Uranium (Pty) Ltd and Others ZASCA there have been, and will continue to be, burning questions surrounding which powers shift from the board to the business rescue practitioners (BRPs) once a company has been placed under business rescue supervision. In the Shiva case, the court found that certain administrative powers were retained by the board. For more on the Shiva case see our articles here and here .
Recognition
2017-2023
Chambers Global
Chambers Global 2017-2023 ranked us in Band 2 for restructuring/insolvency.
Chambers Global
Chambers Global 2017-2023 ranked us in Band 2 for restructuring/insolvency.
Happy Clients
"The team were extremely responsive and commercially minded. Their strengths include effective teamwork and mindfulness of costs. They worked under very tight timelines and never once let me down."
Chambers Global 2023