Tag: Dr Eric Levenstein
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).
Creditors now empowered to apply to declare directors delinquent
Dr Eric Levenstein | Director | Head of Insolvency and Business Rescue | Werksmans Attorneys | mail me |
On 2 August 2023, I published an article titled "The...
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.
The rise of the CRO?
Eskom has one and SAA is looking for one. And as South African State Owned Enterprises (SEOs) and private sector companies continue to suffer from an ailing economy, there is no doubt that the role of Chief Restructuring Officer (CRO) is catching on.
The current status of business rescue
Generally, the South African business rescue process is positive in the sense that a successful business rescue delivers a restructured and viable company back into the South African economy and where jobs are retained in the process.
