oa De Rebus - Business rescue : the position of secured creditors : feature
|Article Title||Business rescue : the position of secured creditors : feature|
|© Publisher:||Law Society of South Africa|
|Publication Date||Sep 2014|
|Pages||34 - 36|
If company B goes into business rescue and secured creditor A does not have the largest voting interest, and is thereby unable to direct the business rescue process, a simple reading of s 152(1)(e) and s 152(2) of the Companies Act 71 of 2008 (the Act) would imply that a business rescue plan diminishing the security of the secured creditor can be adopted by a 75% vote of all creditors who voted. This situation is, however, mitigated by s 154(1) of the Act, but the extent of the mitigation is not clear.
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