Business Rescue Proceedings are your avenue to saving your company from over indebtedness and financial decline. Business Rescue proceedings have been introduced to aid South African companies, which are financially distressed or which trade in insolvent circumstances, by allowing them an opportunity to reorganise and restructure.
At M. P. Lutge Incorporated, we can assist your business in obtaining the following advantages through the use of Business Rescue proceedings by:
- Putting in place a moratorium (a halt) on all claims against the company;
- Preventing harassment by creditors;
- Mitigating information asymmetries;
- Putting in place voting rules mitigating coordination problems amongst creditors, and
- Using the proceedings to gain access to the right to suspend or cancel contracts limiting the claim to damages only.
At M. P. Lutge Incorporated’s Durban firm of attorneys, the founder and director, being both an attorney and the director of numerous multimillion rand companies and businesses since the 1970’s, has over the last three decades amassed a depth and breadth of theoretical and practical understanding of the subtleties involved when dealing with administration and running of successful business. Mr. Lutge’s practised and honed business acumen are perfectly suited to aiding your company in its Business Rescue proceedings.
Furthermore, M. P. Lutge Incorporated managed to, over the years, become more than just a firm of attorneys and now has at its fingertips a complex network of experts throughout South Africa. This means we can appear for your business regardless of where you are situated in the country.
All you need to do is the following and we will be able to assist your company in its time of distress:
- Call us and we will send you the documents you are required to complete;
- Fax/email it together with the following documents to our offices:
a. Copy of your businesses CK documents;
b. An account sent to the business registered head office;
- We contact you regarding the way to proceed.
Our firm has, as its sole purpose during the Business Rescue proceedings, the maximisation of your business’ likelihood of continuing in existence on a solvent basis. Successful Business Rescue is dependent on the development and implementation of a Business Rescue plan to rescue the company by restructuring its affairs, business, property, debt, other liabilities and equity in association with the creditors. At the very least, the implementation of a Business Rescue plan should result in a better return for the company’s shareholders and creditors than would result from an immediate liquidation of the company.
Should the Business Rescue fail, our team of legal experts are able to assist directors, stakeholders, liquidators and creditors during the liquidation process.
Our firm can offer you expert guidance in the following aspects of, and related to, Business Rescue proceedings:
- advising on the general moratorium on legal proceedings against a company which has filed for Business Rescue;
- protection of property interests;
- advising directors of companies trading in what may be insolvent circumstances;
- advising creditors whether or not to oppose Business Rescue proceedings;
- assisting creditors in attending meetings and dealing with their claims and securities in Business Rescue;
- advising on whether or not a company should pass a resolution for Business Rescue;
- advising on the structure, implementation and approval of the Business Rescue plan;
- dealing with the section 155 compromise between the company and its creditors;
- advising on directors’ liability issues in terms of the new provisions relating to trading recklessly and in insolvent circumstances;
- providing support in forensic legal issues arising from liquidation proceedings;
- advising on whether or not creditors should make application for Business Rescue as opposed to liquidation;
- liaising with the Business Rescue practitioner and existing directors;
- advising on the effect of Business Rescue on contracts;
- advising on sequestration proceedings;
- assistance with insolvency inquiries
- advising on whether or not to vote in favour of remuneration arrangements made by the Business Rescue practitioner;
- advising on the commencement and administration of the insolvency process including proof of claims;
- recovery of assets in the liquidation scenario;
At our Durban branch of attorneys, M. P. Lutge Incorporated is your firm of attorneys, no matter where you are in South Africa, for Business Rescue proceedings.