Business rescue is not simply a payment holiday. It can fundamentally change how the company operates, how creditors are dealt with and how the business is structured — employees, suppliers, shareholders and creditors can all be affected.
Source: Companies Act 71 of 2008
Frequently Asked Questions
What is a business rescue practitioner?
It is a person appointed to oversee the business rescue proceedings of a financially distressed company.
Does the existing management automatically disappear?
Not necessarily — management can continue operating, but it is subject to the practitioner's authority and the business rescue framework.
What is a business rescue plan?
It is the plan setting out how the company is intended to be rescued or how a better outcome for stakeholders will be achieved.