Business rescue is defined in the Companies Act of 2008 as proceedings to facilitate the rehabilitation of a company that is financially distressed by providing for:
(i) the temporary supervision of the company, and of the management of its affairs, business and property;
(ii) a temporary moratorium on the rights of claimants against the company or in respect of property in its possession; and
(iii) the development and implementation, if approved, of a plan to rescue the company by restructuring its affairs, business, property, debt and other liabilities, and equity in a manner that maximises the likelihood of the company continuing in existence on a solvent basis or, if it is not possible for the company to so continue in existence, results in a better return for the company’s creditors or shareholders than would result from the immediate liquidation of the company;
What you want from a business rescue is to save the business by restructuring the debt and operations, amongst other methods in order to avoid a liquidation. Unfortunately in some cases a liquidation is inevitable. However, a voluntary liquidation may have a better outcome than a forced liquidation. It is best to act sooner rather than later.
Exceed can put you in touch with the right network of professionals in order to assist you with the above. The first consultation is obligation free.
In some cases temporary funding is required in order for a business to have a successful turnaround and an eventual favourable outcome for all stakeholders.
Together with our partners, we can assist you in formulating the correct action plan and determining if this is in fact a viable option. Implementing financial controls will be critical to your success.
Free consulting services
At Exceed we understand that the South African economy is driven by the success of its entrepreneurs that create employment. We find that these business owners often walk a lonely road in keeping their ship afloat. They also need expert financial and tax advice at certain crossroads on their journey. Obtaining this advice can be costly, but does it always add value?
Well, why don’t you put us to the test? We are willing to devote 8 hours of our time to your business at absolutely no cost. Yes, you heard right. 8 hours obligation-free time is our commitment to you. This could come in the form of taxation consulting, bookkeeping, general compliance work or general financial business advice. Whether you are a new start-up or an established company, we are here for you. We want to ensure we add value and are willing to prove it.
Our time is limited so don’t delay and call us now to avoid disappointment.