Why Work With Us?

Our Business Rescue Services

Business Rescue Professional Solutions provides several services to businesses in financial distress. We render these services in the interests of repaying debts and avoiding insolvency.We work with companies that have financial and management challenges and assist them to implement practical, best case possible solutions. We work  in the main with SME’S , focusing on their particular requirements, and guiding them to renewed prosperity and sustainability.

Our expertise, and professional alliances enable us to:

• provide advisory services with regard to business rescue proceedings and its impact on all stakeholders;
• act as a business rescue representative for creditors or stakeholders;
• provide an independent and expert appraisal of probable liquidation dividends for creditors or stakeholders;
• assist employees and/or their respective representatives in the business rescue process; 
• as a part of the business rescue process we create and implement the business rescue plan; 
• handling and assisting all legal proceedings relevant to the business in financial distress; and 
• we assist in sourcing and applying for post commencement finance.

IS BUSINESS RESCUE AN OPTION FOR YOUR BUSINESS?

Many companies find themselves under financial pressure in today’s challenging and complex economic and trading environment. It is imperative that directors of enterprises immediately take appropriate action and decisions when it comes to light that their business is in “financial distress”. In South African Law, a director would have a duty to consider a resolution for Business Rescue as soon as the director is knowingly aware that the company is trading in a position of “financial distress”.
“Financially distressed” means that it appears reasonably unlikely that a company will be able to pay all of its debts as they fall due and payable within the immediately ensuing six months or it appears reasonably likely that a company will become insolvent in the immediately ensuing six month– i.e. with its liabilities exceeding its assets. (The test for business rescue is therefore a six-month forward looking test, it being whether or not the company will become insolvent (on its balance sheet) or unable to pay its debts as and when they fall due for payment (i.e. commercial insolvency).
Early signals in respect of looming insolvency and “financial distress” would be general issues such as cash flow problems, a balance sheet which reflects liabilities in excess of the company’s assets and an inability on the part of the company to pay its debts as and when they fall due and often more specifically: ongoing trading losses, a continual failure to meet company commitments to SARS, delayed payment to essential and non-essential creditors, part payment to and instalment plans with creditors, dishonoured cheques, artificial valuation of assets, factoring of debts, an increase in the incidence of internal fraud, COD terms with suppliers, receipt of letters of demand, summons/actions and liquidation notices and continued injection by shareholders of capital into the company due to insufficient capital requirements.
To be afforded Business Rescue the company must also be capable of being rescued. For there to be a “reasonable prospect” of rescuing a company, a business rescue practitioner ought to be able to indicate the cause of the demise of the company or the reasons for its failure and offer a remedy for such demise that is likely to be sustainable. In support of this, the practitioner would need to provide concrete and objectively ascertainable facts, which facts are beyond mere speculation, indicating that the remedy proposed is reasonable and sustainable.
Once a director has taken advice either from the company’s auditors or from legal counsel, and such advice supports the position that the company is financially distressed or insolvent, such director should place the company into business rescue or into liquidation by the passing of a resolution in support of Business Rescue or the company’s liquidation. Once directors have taken advice, it is up to them to ensure that a board meeting is convened as a matter of urgency to consider the passing of a resolution in support of business rescue or liquidation. This process should commence as soon as possible and if necessary on an urgent basis in order to ensure that creditors are not prejudiced by any delays caused by the failure of directors to proceed in this manner.