Page 15 - PowerPoint Presentation

BUSINESSES IN DIFFICULTY

Business rescue principles in terms of the

Companies Act

• Business rescue is a system to temporarily protect a

company against the claims of creditors so that the

business can be restructured and thereafter sold

for maximum value as a going concern, thus giving

creditors and shareholders a better return than

they would have received had the company been

liquidated.

• A successful business rescue procedure therefore

does not necessarily require that all creditors be

paid in full or that all shareholders retain their

investment.

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