The Chance to Save Your Business
A Second Chance for Businesses in Distress
For a company with a viable core business but overwhelming debt, liquidation can feel like a premature end, destroying value and jobs. Business rescue offers a powerful opportunity to restructure and recover. However, it’s a complex and high-stakes process that, if managed poorly, can fail and lead directly to a more costly liquidation.
Business Rescue is a legal process that enables financially distressed companies to reorganise and continue operating under temporary supervision, rather than closing through liquidation. The goal is to restore solvency and maintain employment while protecting creditors’ interests.
We Assist With:
- Suspension of legal action by creditors.
- Continued operation of the business.
- Protection of jobs and assets.
- Negotiated settlements instead of forced liquidation.
- Potential for long-term recovery.
- Strategic Legal Advice for Directors: We provide clear legal advice to a board of directors on their duties and the significant legal implications of entering business rescue.
- Representation for Creditors: We represent creditors in business rescue proceedings to ensure their rights are protected and their claims are fairly considered in the rescue plan.
- Practitioner Network: We work with a network of experienced, reputable, and independent business rescue practitioners in Johannesburg.
- Holistic Insolvency Knowledge: Our deep understanding of both liquidation and business rescue allows us to provide balanced, strategic advice on the best legal path for a company.
- Accredited Mediators: Qualified under the Gauteng directive for corporate restructuring.
- Comprehensive Legal Support: From filing to final plan approval.
- Director Protection: Ensuring compliance and fiduciary integrity.
- Confidential & Strategic: Discreet handling of financial challenges.
- Board Resolution & Filing: The process begins when the board of directors pass a resolution that the company is financially distressed and files the necessary documents with the CIPC.
- Appointment of a Practitioner: A licensed Business Rescue Practitioner is appointed to take over full management control of the company.
- Temporary Moratorium on Legal Action: A crucial “breathing room” period begins. A general moratorium on all legal proceedings against the company is automatically implemented.
- Investigation & Plan Development: The practitioner investigates the company’s affairs to determine if there is a reasonable prospect of rescue and develops a detailed Business Rescue Plan.
- Creditors’ Meeting & Plan Adoption: The plan is presented to all creditors and shareholders for a vote. If the requisite majority approves the plan, it becomes legally binding.
- Implementation: The practitioner oversees the implementation of the rescue plan.
- Exit or Liquidation: If the plan is successful, the company exits business rescue. If it is rejected or fails, the company will likely proceed to liquidation.
- Learn About Commercial Dispute Resolution →
- Legal oversight of rescue documentation
- Creditors’ meetings and reporting
- Dispute resolution and negotiation
- Court applications and compliance monitoring
- Learn About Mediation & Arbitration →
- Creditor and debtor negotiations
- Voluntary restructuring agreements
- Payment moratoria and settlements
- Pre-rescue mediation to preserve trust
- Explore Court-Linked Mediation →
- Waiting Too Long: The earlier a company enters business rescue, the higher its chances of a successful recovery. Waiting until the company is hopelessly insolvent dooms the process to failure.
- Appointing the Wrong Practitioner: The skill and experience of the Business Rescue Practitioner is the single most critical factor in a successful rescue.
- Lack of Cooperation with BRP from Management: Slows progress and may cause failure. The existing directors and management must provide their full cooperation to the practitioner for the process to work.
- Unrealistic Rescue Plans: A plan that is not commercially viable or does not have the support of key creditors will fail.
- Inaccurate Financial Reporting – Undermines trust with creditors.
- Excluding Creditors from Negotiations – Breaches statutory obligations.
- Ignoring Mediation Opportunities – The High Court directive requires mediation before legal escalation.
- Court-Linked Mediation Explained →
Answers for Directors & Creditors
Business Rescue FAQs
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