Have any questions about business rescue?
Read some of the articles below with advice and information about business rescue written straight from the mind of an expert.
In turnaround management, cost-cutting is the low-hanging fruit, easy to reach, quick to execute, and highly visible. It signals action, buys time, and soothes stakeholders.
In Greek mythology, Medusa was portrayed as a monster, her gaze turning men to stone, and her head sought as a trophy. Her origin story tells a different version of this truth. She was once a mortal woman, violated by a Greek god, too powerful to be punished, and then cursed to the mythological monster we know, not by her own doing but by the actions of others.
Section 128 of the Companies Act provides two options for business rescue, to rehabilitate a financially distressed company, or if that’s not possible, to ensure a better return to company’s creditors or shareholders than immediate liquidation.
In every business rescue engagement I’ve been involved in, one constant remains, BETRAYAL. It’s as much a part of business as ambition, strategy, or the hunger for success.
Directors of distressed businesses often know they need a Turnaround Manager. They hire one, bring them in, and then… start telling them what to do.
Many business owners and directors who have experienced past success, or worse, who have inherited success, fall into the trap of overestimating their abilities. They assume they are destined to remain successful because they once built something great.
A family business, built over generations, was known for its resilience, profitability, and strong market presence. With substantial funds in the bank and little to no debt, the business was – by all conventional measures – a success. The last heir to run the business inherited this legacy and – confident in its strength – saw an opportunity to expand.
A Business Rescue Practitioner prepared a business rescue plan that included the sale of 17% of immovable assets. This plan would not only save the business but also position it for a brighter future for generations to come. All creditors were on board, and the adoption of the plan was imminent.
Many directors believe that if a tactic has worked before, it must be smart business. But what if the trusted tactic turns into a crime?
The business was originally established in July 1948 and operated successfully for many years. In May 2015, the business was purchased for a substantial amount, financed by no fewer than six financiers, in addition to the owner's personal contributions.
Established in 2008, the corporation operated in staff recruitment and temporary placements, primarily within the motor industry in the Eastern Cape and border areas.
Established in 2004, this business provided specialized construction services, focusing on roadworks and general civil engineering projects in the greater Eastern Cape region.