n Without Prejudice - When creditors reject business rescue : company law
|Article Title||When creditors reject business rescue : company law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Publication Date||Sep 2014|
|Pages||6 - 7|
A recent article in Business Day highlighted some of the difficulties and pointing of fingers that have been encountered in practice in the context of business rescue under the Companies Act (71 of 2008). A key issue highlighted in the article may be commented on from a legal perspective, namely the situation where a major creditor decides not to support business rescue proceedings in the particular circumstances (with the result that the business rescue plan will inevitably fail due to insufficient votes from creditors). The article in question refers to allegations that such non-support, from banks in particular, is very prevalent in practice.
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