A recent trend that has emerged in South African businesses shutting their doors is to opt for the path of business rescue, as opposed to liquidation. While many believe that a business rescue process is only implemented to stall a liquidation, thereby also frustrating the creditors of a company, this is not the case.
Business rescue, which is a process of rehabilitating a business that is in financial distress by providing temporary supervision and management by a business rescue practitioner, should not be used as means to stall the liquidation process. Business rescue aims to provide the business entity an opportunity to reorganise and restructure its affairs, while having the protection of the law against any legal proceedings.
It i…
Read the full article at: https://www.moneyweb.co.za/moneyweb-opinion/soapbox/business-rescue-or-liquidation-when-to-choose-which-2/