In a global landscape where the restructuring of financially distressed companies is becoming increasingly prevalent, Chapter 6 of South Africa’s Companies Act, No. 71 of 2008 introduced business rescue as a crucial element.

Rethinking, Reorganizing, Restructuring

For South African companies facing financial distress or operating in insolvency, business rescue provides a vital opportunity for revitalization. It calls for a fundamental reevaluation, reorganization, and restructuring.

A Transformative Impact

The implications of business rescue extend far and wide, impacting creditors, financial institutions, shareholders, employees, and restructuring experts alike.

Navigating the Legal Landscape

At CMG, we possess a deep understanding of current legislation and the intricacies of business rescue proceedings. This encompasses advising on the process, appointing business rescue practitioners to oversee proceedings, and delineating the responsibilities and liabilities of all parties involved.

Aim for Solvency

Our primary objective in business rescue is to enhance the likelihood of the company’s sustained existence on a solvent foundation post-business rescue.

The Crucial Business Rescue Plan

The linchpin of business rescue lies in the effective development and implementation of a business rescue plan. Subject to creditor approval, this plan restructures the company’s operations, assets, debts, liabilities, and equity.

Guiding Stakeholders Every Step of the Way

CMG is here to provide comprehensive guidance to business rescue directors, stakeholders, employees, and creditors throughout the entire process. This includes offering strategic insights, aiding in critical decisions (such as voting on a business rescue plan or considering alternative courses of action), and safeguarding financial interests, especially in financing and lending transactions.

Urgency is Paramount

In business rescue, time is of the essence. The Act stipulates tight timeframes, underscoring the need for stakeholders to have immediate access to robust legal support.

Proactive Pursuit of Business Continuity

CMG’s approach to business rescue is proactive, centered on advising companies on achieving the highest level of business continuity.

Let CMG be your guiding force through the intricacies of business rescue, ensuring a path towards renewed financial vitality and sustained success.