The 2008 Companies Act introduced Business Rescue (BR) provisions whereby any entity experiencing financial difficulties, but with a reasonable chance of turning around, can apply to undergo business rescue.
A BR practitioner is appointed who then handles negotiations with creditors, especially SARS, and prepares a plan to turn the entity around. Experience has shown that many professionals prefer to put the business straight into liquidation – that way they get paid their percentage of your asset value and the creditors can fight over what’s left.
Our attitude is to avoid liquidation, wherever possible, in an attempt to turn the business around, saving jobs and money – AND the business. We are recognised senior BR practitioners with a proven successful track record in this area and our practise is one of only 14 where a Chartered Accountant is the only BR practitioner. The other practitioners in South Africa are generally from the legal profession.
Visit our associate company BRaTaC – Business Rescue and Turnaround Consulting, specialising in Business Rescue and offers of compromise with creditors and SARS.