Current Proceedings
All active rescue proceedings are conducted in strict compliance with Chapter 6 of the Companies Act 71 of 2008 and all CIPC regulatory requirements.
Active business rescue proceedings are subject to strict confidentiality obligations under the Companies Act. Specific details of active proceedings — including company names, creditor structures, and plan content — are communicated directly to affected parties in accordance with the Act's requirements and are not published publicly.
Affected parties (creditors, employees, shareholders) who require information about a specific proceeding in which Mike Benfield CA(SA) is the appointed BRP should contact us directly.
The Process
Understanding the statutory Business Rescue process is critical for all affected parties — from boards of directors who are considering filing, to creditors and employees who want to understand their rights and the timeline ahead.
Business Rescue commences either by a board resolution (voluntary) under s129 of the Act, or by a court order following an application by an affected person (s131). On commencement, a moratorium on legal proceedings against the company takes immediate effect — shielding the company from creditor action while the rescue is in progress.
A registered Business Rescue Practitioner (BRP) is appointed within 5 business days of commencement. The BRP assumes full management control of the company — superseding the existing board and management — and is responsible to all affected parties, not merely to shareholders.
Within 10 business days, the BRP convenes the first meeting of creditors. At this meeting, creditors may elect a creditors' committee and may apply to court to have the BRP replaced if they have grounds to do so. The BRP provides an initial overview of the company's financial position and the proposed rescue strategy.
Within 25 business days of appointment (extendable by agreement), the BRP publishes a Business Rescue Plan. The plan sets out: a description of the company's financial position, the proposed rescue strategy, the treatment of each class of creditor and the dividend they can expect to receive, and why adoption of the plan offers a better outcome than liquidation.
Creditors and affected parties vote on the plan at a formal meeting. Adoption requires 75% of votes cast in value (across voting interests), with more than 50% of independent creditors (those unrelated to the company) voting in favour. If adopted, the plan is binding on all affected parties — even those who voted against it.
Once the plan is adopted, the BRP works to implement it. When the BRP determines that the plan has been substantially implemented, they file a notice with the CIPC (CoR125.3) and the company exits business rescue. The moratorium lifts, and the company resumes normal operations — or concludes an orderly wind-down — in accordance with the plan.
Statutory Obligations
Under Chapter 6 of the Companies Act, all affected parties have specific statutory rights that the BRP is obliged to uphold throughout the proceedings.
All creditors receive formal notice of the commencement of proceedings, the first meeting of creditors, the publication of the Business Rescue Plan, and the meeting to vote on the plan. Secured creditors retain their security interests subject to the moratorium.
Employees retain their employment contracts during business rescue and their representatives are invited to all creditor meetings. The BRP must consult with labour unions and employee representatives on any proposed retrenchments — these are subject to s189 of the Labour Relations Act.
Shareholders receive copies of all published documents and may attend but not vote at creditor meetings, unless they are also creditors. The plan must set out the proposed treatment of shareholders' interests and the dividend — if any — they are expected to receive.
Suppliers of Post-Commencement Finance (PCF) — the new funding required to keep the company operational during the rescue — have a statutory super-preference over all pre-commencement creditors. This preference is critical in attracting rescue funding.
Are You an Affected Party?
If you are an affected party in a proceeding where Mike Benfield CA(SA) has been appointed as the BRP, contact us directly. All correspondence from affected parties is dealt with promptly and in compliance with the Act.
If you are a creditor seeking to understand your rights or lodge a claim, Mike Benfield responds personally to all affected-party enquiries.
Contact MJBusiness Rescue