Tag: business rescue
Built environment risk management – strategies for construction projects
In George, thirty-four people died when a partially completed five storey residential building collapsed. This event is tragic, and albeit the worst building disaster in South Africa, is by no means an isolated incident of professional incompetence.
Business rescue payment obligations
A landmark high court ruling found that business rescue practitioners can't "have their cake and eat it too". The case involving sugar giant Tongaat Hulett, balances the principles of corporate rescue with the broader societal imperatives of industry regulation.
Voting rights denied for post-commencement creditors – implications
The recent decision by the Gauteng High Court denoting that creditors who have acquired their claim in a business after business rescue has commenced are not entitled to vote on business rescue plans could set a significantly risky precedent for any future organisations facing business rescue.
Insolvency – the impact of distressed corporates & director apathy
An issue which is of concern to insolvency practitioners across the globe and in South Africa, is the ever increasing level of corporate distress and uncertainty, and which impacts the role of insolvency practitioners (liquidators and business rescue practitioners) and the manner in which they can assist in the restructuring of companies that might be on the brink of insolvency.
“Seismic ruling” – financiers cannot vote on a business rescue plan
Should post-commencement financiers have a vote on business rescue plans? A critical look at Wescoal Mining (Pty) Ltd & Another versus Mkhombo NO & Others (2023-079991) [2023] ZAGPJHC 1097 (2 October 2023). On 2 October 2023 Judge Wilson of the Gauteng Division of the High Court of South Africa endeavoured to ascribe a meaning to the undefined term "creditor" in Chapter 6 of the Companies Act 71 of 2008 (the Companies Act).
To stand or not to stand – a case of legal...
A claim in the case of Joubert and Others v Louw (CIV APP RC 08/2022) [2023] ZANWHC 102 (22 June 2023) was dismissed by the High Court on the grounds that the respondent lacked the requisite legal standing to litigate on behalf of her husband who was the party to the contract sued on.
Judge settles old debate – mining rights and indirect change of...
A recent Supreme Court judgment has clarified that ministerial consent under section 11 of the Mineral and Petroleum Resources Development Act (MPRDA) is needed for both direct and indirect changes of control of a company that holds mining rights.
Why trade credit insurance matters
South Africa is currently experiencing challenging political and economic conditions, which has a direct impact on the financial and trading performance of businesses. Vulnerabilities to external shocks have also converged at the worst possible time in our post-pandemic economy, with the impact rapidly manifesting in financing becoming more difficult to secure, more expensive and dwindling foreign direct investment.
Financial crisis! – what are your options?
We are living in a time of economic uncertainty. Inflation is skyrocketing, Eskom is loadshedding, and food prices are the highest they’ve been in 14 years. These conditions are putting a lot of strain on business owners, and some tough decisions regarding the future may need to be made.
Blackouts and further tariff hikes point to inevitable financial distress
Rolling blackouts and the recently imposed 18.65% Eskom tariff hikes from April next month are likely to place additional stress on the South African consumer and businesses to the extent that further bankruptcies are inevitable. With the prospect of higher interest rates, low growth and still high inflation, many companies could face corporate failures particularly in the early part of 2023.