The downturn in world economies has placed business under severe pressure in the last few years. In South Africa, the knock-on effect has been felt, with several businesses going out of business, filing for liquidation and with many turning to the South African business rescue procedure as a possible lifeline.
Chapter 6 of the Companies Act No 73 of 2008 (the 2008 Companies Act) introduced intervention mechanisms to rescue companies that are in financial distress. The test set out in the 2008 Companies Act is that if it appears to the board of a company that it may be reasonably unlikely that the company will be able to pay all of its debts as they become due and payable (commercial test) within the immediately ensuing six-month period; o…
Read the full article at: http://www.iol.co.za/business-report/opinion/business-rescue-brings-hope-to-creditors-7416399