Insights & Commentary
Expert commentary on Chapter 6 proceedings, turnaround strategy, and corporate recovery from a practitioner who has been in the CEO's chair.
Most businesses don't fail overnight. In my experience across manufacturing, logistics and operations, distress usually builds gradually — but because the decline happens incrementally, leadership teams learn to live with it until options run out.
Read full article →One of the key thresholds for commencing a voluntary business rescue is the board's belief that there is a "reasonable prospect" of rescuing the company. But what does this standard require in practice — and what happens if a director files when no such prospect exists?
Read full article →Many creditors enter a Business Rescue proceeding without a clear understanding of where they rank in the statutory waterfall — or how the moratorium affects their ability to enforce their claims. This matters enormously when the Business Rescue Plan is voted on.
Read full article →The most common mistake made by directors of companies in distress is waiting too long to seek help. By the time a company reaches the point of formal Business Rescue, many of the options that were available months earlier have closed.
Read full article →Directors of South African companies have significant personal liability exposure when a company is in financial distress. The Companies Act imposes obligations on directors to act in the best interests of the company — and these obligations become more complex in distress.
Read full article →Post-Commencement Finance (PCF) is the new funding secured after a Business Rescue commences to allow the company to continue trading while the rescue plan is developed. Without PCF, most rescues fail — not because the business is unviable, but because cash runs out.
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