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So far mr.admin has created 41 blog entries.

COVID-19 AND SMMEs

Covid-19 & SMMEs The notorious coronavirus, also known as COVID-19 is causing a slowdown in trade, not only in South Africa but worldwide. In the past weeks, we have seen a lock-down of countries such as China and Italy. South Africa is no exception, on the 23rd of March 2020, the President announced that SA [...]

BUSINESS RESCUE AND LANDLORDS

Business rescue and landlords Most companies lease properties to conduct their business and landlords are often the first to realise that their tenants are facing financial difficulties. Not so long after the tenant’s failure to pay rent, landlords find themselves with tenants which commenced with business rescue, wanting to evict them from their premises. Section [...]

ANOTHER STATE-OWNED AIRLINE PLACED INTO BUSINESS RESCUE

Another state-owned airline placed into business rescue A couple of months after South African Airways (SAA) was placed into business, another state-owned airline, SA express, was also ordered to begin business rescue by the Johannesburg High Court on 6 February 2020. This comes after one of its creditors filed an application in terms of section [...]

NON-PAYMENT OF SALARIES BY EMPLOYER UNDER BUSINESS RESCUE

Non-payment of salaries by employer under business rescue In this week’s article, we will deal with the procedure as well as the appropriate forum (Labour Court or High Court) to approach when employees seek an order compelling their employer, who’s under business rescue, to pay all the unpaid remuneration during business rescue proceedings. The jurisdictional [...]

SUSPENSION OF OBLIGATIONS DURING BUSINESS RESCUE

SUSPENSION OF OBLIGATIONS DURING BUSINESS RESCUE Once a company commenced with business rescue proceedings the practitioner may in terms of Section 136(2)(a) of the Companies Act suspend the obligations of the company. In the matter of BP Southern Africa (Pty) Ltd v Intertrans Earl SA (Pty) Ltd & Others [2016], the court had to consider [...]

BUSINESS RESCUE & RESERVATION OF OWNERSHIP

BUSINESS RESCUE & RESERVATION OF OWNERSHIP Since the inception of business rescue proceedings, there is uncertainty in respect of the rights of creditors they previously enjoyed. One of these rights is ownership in movable assets. Often creditors reserve ownership in moveable assets in case the debtor is unable to pay. Business rescue practitioners often dispute [...]

SINK OR SWIM – BUSINESS RESCUE

SINK OR SWIM – BUSINESS RESCUE Lowvelder article for 27 January 2017. Restructuring of companies in financial distress is on the increase. In South Africa, Chapter 6 of the Companies Act introduced business rescue as an opportunity for financially distressed companies to file for a formal restructuring process, aimed at rehabilitation and enabling them to [...]

A SECTION 155 COMPROMISE AN ALTERNATIVE TO BUSINESS RESCUE

  A SECTION 155 COMPROMISE AN ALTERNATIVE TO BUSINESS RESCUE Lowvelder Article for 21 April 2017 The Companies Act provides for a company in financial distress to commence with business rescue proceedings in an attempt to rescue the company. However, the Act also makes provision for a company to enter into a compromise or arrangement [...]