n Without Prejudice - Beware the perceived blanket moratorium : company law
|Article Title||Beware the perceived blanket moratorium : company law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Publication Date||Jul 2015|
|Pages||12 - 13|
Business rescue, in s128(1)(b) of the Companies Act (71 of 2008), is defined as "...proceedings to facilitate the rehabilitation of a company that is financially distressed...". In terms of s128(1)(b)(ii), one of the ways this is achieved is to provide the financially distressed company with time to pay its creditors by placing a moratorium on the rights of the creditors to enforce their claims. The moratorium provides for a period of respite to enable the company to restructure its affairs and adopt a plan to pay its creditors.
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