BUSINESS RESCUE
Resolute Solutions is Professional Business Rescue and Insolvency Practitioner who have over the years assisted hundreds of businesses in financial distress. Let our team of dedicated and experienced Business Rescue Practitioners and Lawyers help you restructure your affairs for the purpose of saving your business and maximising the outcome to stakeholders.
At Resolute Solutions we have the expertise to advise on the solution which best fits your business and we tailor our advice and action to your specific needs while taking care of every aspect of the process.
Voluntary Business Rescue is a useful alternative to the Liquidation or winding-up of a company when a business is experiencing short term problems but it is still viable in the long term.
What Is Voluntary Business Rescue?
Business rescue is a legal process with the aim to facilitate the rehabilitation of a company that is “financially distressed”. The management of the company and its affairs is temporarily placed under supervision of a business rescue practitioner. A temporary moratorium is declared on the rights of claimants against the company or in respect of property in its possession. This process is facilitated by the development and implementation of an approved business rescue plan by restructuring its business, property, debt, affairs, other liabilities and equity.
Grounds For Applying For Business Rescue
- When it appears to be reasonably unlikely that the company will be able to pay all of its debts as they become due and payable within the immediately ensuing six months.
- When it appears to be reasonably likely that the company will become insolvent within the immediately ensuing six months.
Important Considerations
- During the proceedings, the business rescue practitioner will have full management control of the company.
- Director of a company can continue to exercise their duties under the temporary supervision of the business rescue practitioner.
- Business Rescue is usually a costly process especially for small companies.
- When confronted with this decision business owners should consider which of the two better suits their financial circumstances and foreseeable prospects taking the purposes and procedures of both into account.
Although the proceedings and implications of business rescue and liquidation are distinct, the fact that a company has opted for one of these courses of action does not preclude it from later terminating such course and proceeding with the other.