DISTRESSED BUSINESS CONSULTING GROUP
COVID – 19 BROUGHT FINANCIAL DISTRESS TO MANY ENTITIES IN SOUTH AFRICA
TO ASSIST YOU IN NAVIGATING THROUGH THESE UNCERTAIN TIMES WITH THE LEGAL
MECHANISMS TO YOUR DISPOSAL
CONTACT US (ANONYMOUS IF YOU PREFER) FOR ADVICE
PROVIDING CONSULTING ASSISTANCE DURING THE STATE OF DISASTER
The 2002 Disaster Management Act facilitates co-ordination, mitigation and recovery following a disaster, defined as a “natural or human-caused occurrence that causes disease, damage to property infrastructure or the environment or disruption of the life of a community”.
In a national disaster, Section 26 of the act makes the national executive “primarily responsible” for coordinating measures for the mitigation, prevention and recovery and rehabilitation from disaster.
The Companies Act No 71 of 2008 (“Companies Act”),
A company that is in financial distress:
In terms of the Companies Act, a company will be considered to be in financial distress, if the company is not in a position to reasonably pay all of its debts as they become due and payable within the immediately ensuing period of six months or if it appears reasonably likely that the company will become insolvent in the immediately ensuing six months. Once it has been established that a company is in financial distress, its directors and management must then consider whether to file for liquidation or enter into business rescue.
WE ARE PROFESSIONALS OPERATING IN THE AREAS OF:
TURNAROUND MANAGEMENT
According to Christina Majaski, from Investopidia, the Key takeaways of a Turnaround are:
- – A turnaround is the financial recovery of a poorly performing company, economy, or individual.
- – Turnarounds are important as they mark a period of improvement while bringing stability to an entity’s future.
- – To create a turnaround, an entity must acknowledge problems, consider changes, and develop and implement a problem-solving strategy.-
BUSINESS RESCUE
Business rescue, as defined by the Companies Act 2008 defines “business rescue” as: “[…] proceedings to facilitate the rehabilitation of a company that is financially distressed by providing for” : (i) “the temporary supervision of the company, and of the management of its affairs, business and property;” (ii) “a temporary moratorium on the rights of claimants against the company or in respect of property in its possession; and” (iii) ” the development and implementation, if approved, of a plan to rescue the company by restructuring its affairs, business, property, debt and other liabilities, and equity in a manner that maximises the likelihood of the company continuing in existence on a solvent basis or, if it is not possible for the company to so continue in existence, results in a better return for the company’s creditors or shareholders than would result from the immediate liquidation of the company.”
INSOLVENCIES
COMING SOON
Assisting with Relief Fund Proposals via our Network
Coming soon