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Business rescue not for the chronically ill

BUSINESS RESCUE NOT FOR THE CHRONICALLY ILL 21 December 2015 The first question that should be asked when considering business rescue is “ do we have a business?”  Presently about 80% of businesses  that are being considered for business rescue do not qualify purely because they are to far gone – [...]

SARS and Business Rescue – Part 3

SARS AND BUSINESS RESCUE (THIRD OF THREE DELIVERIES) 23 November 2015 Given the relatively short timeframe to which the work of the Business Rescue Practitioner (BRP) is subject, a full due diligence investigation of tax issues and compliance cannot be undertaken and the BRP cannot warrant the information upon which returns [...]

SARS and Business Rescue – Part 2

SARS AND BUSINESS RESCUE (SECOND OF THREE DELIVERIES) 20 November 2015 Often, in Business Rescue matters audited financial statements are not available to support submitted returns to SARS and the internal accounting records are inadequate.   The timeframes for the compilation of the initial assessment of the business by the Business [...]

SARS and Business Rescue – Part 1

SARS AND BUSINESS RESCUE (ONE OF THREE DELIVERIES) 16 October 2015 Tax is central to any rescue or restructuring process. There are two main areas for consideration by the Business Rescue Practitioner (BRP): The taxing statutes (value added tax (VAT), pay as you earn (PAYE), income tax and capital gains tax); [...]


PROMISSORY NOTE- SUCCESS STORY   13 October 2015 We recently were confronted with the challenge of raising post commencement finance for a security company in Business Rescue. The only asset of any substantial value was a debt of over R13 million due to the company for security services rendered to the [...]

Business Rescue – Creditor’s Frustration

BUSINESS RESCUE - CREDITOR'S FRUSTRATION 16 September 2015 A typical email from a frustrated creditor: “We rent out equipment at monthly installments. One of our customers has not been paying us for the last 10 months, as they are in business  rescue. What are our rights as a supplier? Do we [...]

The Importance of Pre-Assessment in Business Rescue

THE IMPORTANCE OF PRE-ASSESSMENT IN BUSINESS RESCUE 16 April 2015 The Company’s Act states that the directors of a company need to consider if the company is financially distressed and if there is a reasonable prospect that business rescue will succeed? In order to arrive at an opinion as to whether [...]

How to Object to Business Rescue

HOW TO OBJECT TO BUSINESS RESCUE 06 April 2015 The filing for Business Rescue by a company in financial distress is regularly perceived by some creditors as purely a delaying tactic and a ploy to postpone the inevitable liquidation of the company. Unfortunately Business Rescue Practitioners, mostly due to a particular [...]

Termination of Business Rescue Proceedings

TERMINATION OF BUSINESS RESCUE PROCEEDINGS   06 April 2015 Business Rescue proceedings are brought to an end by either a court order on application by an affected person or by the Business Rescue Practitioner (BRP), by a notice of termination filed by the BRP with the Commissioner (CIPC); or by a [...]

Filing for Business Rescue

FILING FOR BUSINESS RESCUE   24 February 2015 To file for business rescue (BR) is not complicated and can be achieved in a couple of hours. BR creates a moratorium on legal proceedings against the company. No one can execute court orders or commence court proceedings against the entity. The BR [...]