Legal

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 [...]

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 [...]

COURTS SUPPORT BUSINESS RESCUE

COURTS SUPPORT BUSINESS RESCUE What to do when a Creditor of the Company does not participate in good faith in the business rescue process? In the matter between Copper Sunset Trading 220 (Pty) Ltd, t/a Build It Lephalale (under Business Rescue) vs Spar Group Ltd, two creditors voted against the proposed business rescue plan which [...]

WHEN IS A COMPANY INSOLVENT?

WHEN IS A COMPANY INSOLVENT? Lowvelder Article for 5 May 2017 It is not easy to admit that your business is insolvent. However, it is a director’s responsibility to act when the company is in financial destress. It is therefore important to act as quick as possible to provide the company the best chance to [...]

THE BUSINESS RESCUE PRACTITIONER

THE BUSINESS RESCUE PRACTITIONER Business rescue have placed a major responsibility on creditors, directors and shareholders of distressed companies to "come to the rescue" of companies in financial distress. The decision on who to employ as a business rescue practitioner is therefore one of the most crucial decisions a distressed company [...]