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INSOLVENCY &

BUSINESS RESCUE

LAW TEAM

he Insolvency & the fields of insolvency, business
Business Rescue Law rescue and debt recovery as
TTeam consists of Thys well as matters relating to the
Scheepers, Partner and head Prevention of Organised Crime
of this team; partners Callyn Act. Callyn has extensive
IS PRESCRIPTION SUSPENDED Wilkinson and Nkosinathi experience in assisting with
estate management, debt
Gobhozi; Associate Tasmiya
Patel and Candidate Attorney
recovery by way of sequestration,
DURING BUSINESS RESCUE? Carla Bishop. liquidation and business rescue
as well as High Court litigation.
The law team has extensive
experience in insolvency, Nkosinathi Gobhozi is
Insolvency & Business Rescue Team, Cox the business rescue practitioner 20 (Pty) Limited and Others schemes of arrangement experienced in insolvency,
Yeats Attorneys who determines whether the claim also supports this view, where and debt recovery and has general litigation and Road
is acceptable or not. What about the Honourable Tuchten J states represented individuals, SMEs Accident Fund litigation.
rescription extinguishes a creditors who did not receive notice that section 133(3) refers to the and large corporates in this Nkosinathi joined the firm in
debt and brings finality to of the business rescue proceedings, principle, which may broadly be regard. Their focus is on: 2017 as part of the Insolvency
Pdisputes. It is the period or creditors whose claims are described as prescription, that in and Business Rescue Law Team.
within which a creditor must act rejected on the basis that they certain circumstances the claim of ■ Liquidations and
to recover a debt, failing which, the prescribed post-business rescue? a creditor which does not institute sequestrations Tasmiya Patel joined Cox Yeats
debt will prescribe and the creditor Section 133(3) of the Companies proceedings against its debtor ■ Cross-border insolvencies in 2018 and is an Associate.
can no longer claim payment. Act provides that “… any right within a certain time will lapse or ■ Business rescue She has experience in banking
Generally speaking, this period to commence proceedings or become unenforceable. litigation and corporate
is three years for civil claims and otherwise assert a claim against Business rescue, whilst primarily ■ Insolvency interrogations litigation. She specialises in
30 years for debts secured by a company is subject to a time a company protected rescue ■ Perfecting securities recoveries, which include
mortgage bonds. limit, the measurement of that mechanism or “pro debtor” ■ Offers of compromise and liquidations, sequestrations and
Whilst there are challenges time must be suspended during process, also demonstrates an schemes of arrangement business rescue.
with the Prescription Act 68 of the company’s business rescue element of creditor protection
1969 itself, the challenge is worse proceedings.” despite the moratorium provided Thys Scheepers joined the Candidate Attorney Carla
when dealing with an insolvent It is our view that for sake of by section 133(1). firm as a partner in 2014. Bishop joined Cox Yeats in 2018
or financially distressed debtor. clarity, instead of referring to It is imperative that creditors Thys previously practiced as a as part of the Insolvency and
What if statute prevents you ‘the measurement of time’, this actively ensure the status of their senior associate and director Business Rescue Law Team. 
from taking the necessary action provision should have been drafted debtors with whom they trade. heading up an Insolvency, Debt
to recover your debt? This is to align with the South African Creditors should participate in Recovery and Business Rescue
particularly relevant when a debtor institution of prescription. The business rescue proceedings and Department for a number For any Insolvency & Business Rescue
is placed in business rescue. provision should have stated that ensure that their claims are lodged of years. He has extensive law queries, please contact the team on:
Tel: 031 536 8500 or on
Subject to certain exceptions, prescription is suspended from the in good time. However, if caught experience as both a liquidator Email: tscheepers@coxyeats.co.za;
a company in business rescue is time the business rescue procedure unaware by unscrupulous debtors and specialist attorney in all cwilkinson@coxyeats.co.za;
protected against legal action, commences. who failed to provide notice of matters relating to insolvency. ngobhozi@coxyeats.co.za;
including enforcement action, If a company commences the proceedings, our view is that tpatel@coxyeat.co.za and
by section 133 of the Companies business rescue while the period prescription is suspended by Callyn Wilkinson joined the cbishop@coxyeats.co.za
Act which provides that no of prescription is running and a s133(3) and should a creditor’s firm as a partner and practises in Website: www.coxyeats.co.za
legal proceedings, including creditor fails to lodge its claim or is claim prescribe after business
enforcement action, may be precluded from doing so, it is our rescue has commenced but before
continued with or brought against view that the prescription period is implementation of a business
the company during the rescue suspended by section 133(3) of the rescue plan, that claim can still be
period. The intention being, that Companies Act. lodged and cannot be rejected on
the company is afforded breathing the basis that it prescribed. 
space to develop a plan which will The judgement in LA Sport
result in a rescue. Creditors prove 4X4 Outdoor CC and Another Contact 031-5368500 or
claims by lodging the claim with v Broadsword Trading Email: tscheepers@coxyeats.co.za

Thys Scheepers, Callyn Wilkinson, Nkosinathi Gobhozi, Tasmiya Patel, Carla Bishop,
Partner and Team Leader Partner Partner Associate Candidate Attorney

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